CHAPTER VII.
Over-Supply of Low-Skilled Labour.
Sec.1.Restatement of the "Low-skilled Labour" Question .-- Our inquiry into Factory Legislation and Trade Unionism as cures for sweating have served to emphasize the economic nature of the disease, the over-supply of low- skilled labour.

Factory legislation, while it may abate many of the symptoms of the disease, cannot directly touch the centre of the malady, low wages, though by securing publicity it may be of indirect assistance in preventing the payment of wages which public opinion would condemn as insufficient for a decent livelihood.

Trade Unionism as an effective agent in securing the industrial welfare of workers, is seen to rest upon the basis of restriction of labour supply, and its total effectiveness is limited by the fact that each exercise of this restriction in the interest of a class of workers weakens the position of the unemployed who are seeking work.

The industrial degradation of the "sweated" workers arises from the fact that they are working surrounded by a pool of unemployed or superfluous supply of labour.

So long as there remains this standing pool of excessive labour, it is difficult to see how the wages of low unskilled workers can be materially raised.