The worst recession since the 1930s ought to have produced mass unemployment. Yet the numbers in work have risen.
After years of stagnation under the inept management of George Osborne, the British economy is growing, which sounds good news until you learn that living standards are still falling and therefore the boom can’t last.
Straight from Karl Marx too. Once that reserve army of the unemployed is exhausted then wages will rise as the capitalists compete between themselves for access to the profits that can be made by employing labour.
It’s one of the reasons why we like markets, see?
For of course, if we had a monopsony, a single employer, then that competition wouldn’t occur and wages wouldn’t rise.