In Marx, unemployment serves several functions. First, it provides the system
with a pool of available labour from which to draw when the pace of accumulation
increases. Second, unemployment serves to discipline workers, who may not fear being
laid off in an environment of full employment. Third, unemployment holds down wages,
since one of the ways in which unemployment disciplines workers is to decrease their
bargaining power and thus keep wages from rising. Thus, in this view, unemployment is
not only a natural by-product of capitalism, it is essential to its smooth operation.