1) Labor is a key economic resource and unemployment is a major labor problem that arises from conflicts between social realities and ideals in employment. 2) There are several areas of labor problems including unemployment, underemployment, inadequate wages, and poverty. Unemployment refers to willing and able workers who cannot find jobs while underemployment includes those working less hours than desired. 3) Classical economic theories on wages including those of Adam Smith, David Ricardo, and Thomas Malthus postulated that wages would remain at the subsistence level needed for basic living standards.