"The JG thus fulfils an absorption function to minimise the real costs associated with the flux of the private sector. When private sector employment declines, public sector employment will automatically react and increase its payrolls.
"So in a recession, the increase in public employment will increase net government spending, and stimulate aggregate demand and the economy.
"Conversely, in a boom, the decline of public sector employment and spending caused by workers leaving their JG jobs for higher paid private sector employment will lessen stimulation, so the JG functions as an automatic stabilizer controlling inflation.
"The nation always remains fully employed, with a changing mix between private and public sector employment.
"Since the JG wage is open to everyone, it will functionally become the national minimum wage.
"Under the JG, people of working age who are not in full-time education and have less than 35 hours per week of paid employment would be entitled to the balance of 35 hours paid employment, undertaking work of public benefit at the minimum wage.
"The aim is to replace unemployment and underemployment with paid employment (up to the hours desired by workers), so that those who are at any point in time surplus to the requirements of the private sector (and mainstream public sector) can earn a reasonable living rather than suffer the indignity and insecurity of underemployment, poverty, and social exclusion."
Job guarantee - Wikipedia, the free encyclopedia