The labour reserve and hidden unemployment: A place on the grand stand

Abstract

The unemployment figures of the Federal Employment Agency only account for a part of underemployment. If one takes the so-called 'hidden unemployment' or 'labour reserve' into account the total underemployment in the Federal Republic of Germany is roughly 36 per cent higher than the official unemployment figure. This paper revolves around those people 'who are just looking on from the sidelines because they cannot see any place where they can participate' and attempts to estimate the total amount of missing jobs from the entirety of official unemployment statistics, hidden unemployment and labour reserve. After a discussion of the social and labour market policy aspects, the paper comes to the conclusion that the labour reserve belongs to the overall picture of the labour market. Labour market policy can only react properly if all movements and accumulations on the labour market are taken into account. According to the authors the labour reserve must also be included in long-term forecasts on labour supply. In times of a potential lack of skilled labour, this aspect gains in importance as this would otherwise lead to an underestimation of the total amount of potential labour available. (IAB)

Cite article

Fuchs, J. & Weber, B. (2008): Stille Reserve und verdeckte Arbeitslosigkeit: Auf der Zuschauertribüne. In: IAB-Forum No. 2, p. 14-19.