This paper argues that in a growing economy unemployment can be the cause of goods markets failures, even if these are … on the job offers, causing unemployment. Workers, anticipating this, will ask for a risk premium in insecure contracts … eliminate the number precarious job offers. Thus a transitory demand shock will lead to a persistent level of unemployment in a …

unemployment for a given rate of economic growth. The increase in labor resources will in turn also yield faster growth rates in a … conditions unions can promote economic growth and reduce unemployment through long-term wage pacts. …