Reserve army of labour

Reserve Army of Labour is a concept in Marxist economic theory, referring to the unemployed and under-employed in capitalist society. It is synonymous with "industrial reserve army" or "relative surplus population", except that the unemployed can be defined as those actually looking for work and that the relative surplus population also includes people unable to work. The use of the word "army" refers to the workers being conscripted and regimented in the workplace in a hierarchy, under the command or authority of the capitalist.

Concept

The term "reserve army of labour" was coined by Karl Marx and Friedrich Engels in their work Das Kapital. According to Marx, the reserve army of labour is a necessary part of the capitalist system, as it provides a pool of available workers when needed, and can be used to depress wages.

The reserve army of labour is divided into three categories: the floating, the latent, and the stagnant. The floating consists of workers who have been made redundant due to the introduction of new technologies or fluctuations in the market. The latent consists of those who are in sectors of the economy that are susceptible to mechanisation and industrialisation. The stagnant consists of the part of the population that is able to work but whose employment is unstable.

Role in Capitalism

In a capitalist society, the existence of a reserve army of labour plays a crucial role. It serves as a regulator of wage levels and a buffer against economic downturns. When the economy is booming, businesses can draw from the reserve army to meet increased demand. Conversely, during economic downturns, businesses can lay off workers, who then rejoin the reserve army.

Criticism

Critics of the concept argue that it is overly deterministic and fails to account for the agency of workers. They also point out that the existence of a reserve army of labour can lead to increased social inequality and economic instability.

See also

• Unemployment
• Capitalism
• Marxist economics
• Das Kapital

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