Definition of Full Employment



What does the term "full employment" mean? What is the definition of the term "full employment"?

"Full employment" occurs when everybody who wants a job at the current market wage is able to find employment.

Definition of Full Employment - Financial Dictionary"Full employment" does not mean that the unemployment rate is zero. At any given time, people will be moving between jobs, or people may be finishing a temporary job, or people may simply not want to work for whatever reason.

The lowest unemployment rate on record in the United States is 2.5%, and that was posted in both May and June of 1953. A 2.5% unemployment rate is as close to "full employment" as you are going to get - at a 2.5% unemployment rate, virtually everybody who wants a job has one.

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