With increasingly efficient equipment, factories produce more and employ fewer people. This is because 75 percent of all jobs in the global economy are simple and repetitive, so that the technology can replace them. In 2020, less than 2 percent of world’s workers will be employed in factories! In Argentina, to cite just one example, the unemployment rate did not exceed 4% in 1985. Between 1985 and 1992 ranged between 6 and 10%, to climb between 1993 and 1994, more than 15%. Since then, unemployment consistently exceeded 15%. The unemployment rose by 60% between 1990 and 1994, while gross domestic product grew at an annual rate of 7.7% ! The high cost of employment does not seem to have the greatest impact, because poverty levels soared in the developed world where the average minimum wage is U.S. dollars a1.000!
On the other hand, the “flexibility” of labor or the Law not lead to job layoffs, but cheaper and accident compensation, reducing employer contributions to social welfare, public employee layoffs and privatized firms, systematic wage cuts, lengthening of days and intensification of the rhythms of work raising the retirement age, mass employment for ‘contracts’ (without severance payment), conversion of workers in relation to reliance on “self service” to the same companies and, finally, more of that unbridled capitalism we’re hating, with consequences far more natural unemployment. In summary, the causes of unemployment, are inscribed in the very tenets of our system of production and market. Inequalities consequential of all this does not affect cold figures as set out, but men and women of flesh and blood, who, as I said Noemi Sanin, it is impossible to classify, looking into his eyes, between cyclical and structural unemployment. The solution to this problem must be, too, human, necessarily from the improvement of educational investment (another would have been our fate if we had invested in this decade at least 4.5% of GDP on education), the decrease drastic bank interest (important component of production costs), by reducing inflation, reducing the working day and we are not afraid to say, democratization of the profit margins of the system.