ABSTRACT

This chapter explores by reconsidering the definition of full employment and of "labour demand", then by questioning the compatibility between technical progress and the target of full employment. It considers policies to conciliate increasing technical progress with ensuring full employment. The chapter also explores the relationship between the goal of full employment and the presence of technical progress the first step has to be devoted to the question of the impact of rising productivity on the level of employment. It provides an alternative way to conciliate increasing technical progress, full employment and "sustainable" growth comes from the distinction made above between the reduction of labour input coefficients and the reduction of "workers" coefficients. In order to lessen unemployment of a "classical" nature, measures concerning wage moderation and active labour market policies are needed; but these are not sufficient in order to achieve full employment.