The Significance of Full Employment
Full employment is both the rational expectation pursued by micro-level households to maximize income and the primary policy objective of macro-level government regulation. The immense instrumental significance and ultimate value of full employment lie in:
Guarantee of Rights
Under full employment, every worker finds the job they desire, practically proving their genuine rights to autonomous decision-making, voluntary choice, free mobility, self-directed employment, and self-development. Workers' capabilities are demonstrated, validated, and utilized, their intrinsic preferences are satisfied, and they have the opportunity to achieve comprehensive development aligned with their personal aspirations.
Economic Support
Under full employment, workers enjoy secure job guarantees and stable income sources, enabling households to maximize income and achieve all-around development. If workers lose employment opportunities and become unemployed, they simultaneously lose the economic foundation for personal and family development.
Psychological Fulfillment
In a state of full employment, workers not only find jobs but also a sense of social belonging. They are no longer marginalized or excluded by society, and their psychological well-being is no longer distorted by unemployment. Pre-existing unemployment-related mentalities are promptly corrected, eliminating feelings of hesitation, confusion, and aimlessness about the future. Employed individuals gain their desired social positioning, validate their social value, and fulfill their spiritual needs.
Harmonious Development
Under full employment, all social resources, including human capital, are optimally allocated. Actual economic output (GDP) approaches or equals potential output, the economic operating curve nears the production possibilities frontier, and the economic cycle is in a phase of prosperity and expansion. The national economic "pie" is maximized, and even if income distribution ratios remain unchanged, household incomes and government fiscal revenues will rise accordingly. Population development, economic growth, and social progress exist in a dynamically harmonious and healthy state.
Conflict Resolution
Full employment demonstrates the fairness and effectiveness of government decisions and policies. The objectives of macroeconomic regulation are achieved, public satisfaction with government institutions rises, and political support increases. The government can use steadily growing fiscal revenues to support comprehensive social development. All able and willing workers are employed, and latent instabilities, contradictions, frictions, and disturbances in societal development are promptly resolved. Neither vertical intense friction between the government and the public nor horizontal major conflicts among social strata or interest groups will emerge.
Precisely because full employment satisfies both micro-level public needs and macro-level government needs, representing the optimal alignment of rational expectations between the government and the public, individuals across society may oppose many things—but no one opposes full employment. As the optimal developmental state widely pursued by nations today, full employment ultimately serves human growth first and foremost, carrying profound humanistic and people-centric developmental significance. Full employment primarily fosters population development, with the public being its greatest beneficiaries. Only when the majority of China's population achieves sustainable development can China's sustainable economic growth and social progress gain fundamental vitality. If only the bureaucratic class achieves optimal development, urban populations achieve suboptimal development, and the vast rural majority remains underdeveloped—with urban and rural populations "developing" separately under a dualistic structure—China will face a "malignant growth phenomenon" of sustained growth without genuine development.