Critical exegesis of the dominant theories of unemployment

Abstract

Abstract

This article presents a critical review of the main economic theories of unemployment, exploring their foundations and limitations. The classical conceptions of productive employment by Adam Smith and David Ricardo are analyzed, identifying the lack of an explicit definition of unemployment. The neoclassical approach, which focuses on labour market equilibrium, is also examined, as well as criticisms of its inability to explain involuntary unemployment. Finally, the Keynesian perspective is addressed, which links unemployment to insufficient aggregate demand and advocates state intervention to correct short-term imbalances. The article concludes by highlighting the need for a more integrative theoretical approach that captures the complexities of unemployment in contemporary economies.

Keywords: Unemployment; economic theory; labor market; capital accumulation; aggregate demand.