full employment
Noun: - An economic condition in which all available labor resources are being used in the most efficient way possible. Specifically, it refers to a situation where virtually all individuals who are willing and able to work at the prevailing wage rates for their skills can find employment. It does not imply zero unemployment, as some frictional or structural unemployment (people between jobs or retraining) is considered normal and consistent with a healthy, functioning economy.
The term is used primarily in economics, policy discussions, and labor market analysis to describe an ideal or target state for the economy. - It is often a stated goal of governmental fiscal and monetary policy. - The specific unemployment rate considered "full employment" (e.g., 4-5%) can vary by country and economic theory.
- Noun:
- The central bank's policy aims to achieve full employment while keeping inflation in check.
- Economists debate what level of unemployment actually constitutes full employment in a modern service economy.
- Post-war economic planning was heavily focused on maintaining full employment.
- "To reach full employment": To achieve this economic condition.
- The new infrastructure bill is designed to help the economy reach full employment.
- "Full employment output": The level of real Gross Domestic Product (GDP) an economy produces when it is at full employment.
- The economy is currently operating below its full employment output, indicating unused resources.
- Full-employment (adjective, often hyphenated when used attributively): Pertaining to the state of full employment.
- The government published its full-employment budget projections.
- Underemployment (noun): A situation where workers are employed in jobs that do not utilize their skills or provide enough hours of work, which can persist even near full employment.
- NAIRU (Acronym for Non-Accelerating Inflation Rate of Unemployment): A technical economic concept closely related to full employment, representing the lowest unemployment rate that can be sustained without causing rising inflation.
- Maximum employment: A near-synonym often used in central banking contexts (e.g., the U.S. Federal Reserve's dual mandate includes "maximum employment").
- Low unemployment: A less technical term describing a similar condition, though not as precise as the economic concept of full employment.
- Natural rate of unemployment: The long-term unemployment rate consistent with full employment, encompassing frictional and structural unemployment.
- Policies that reduce the natural rate of unemployment can lower the bar for achieving full employment.
- Demand-deficient unemployment: The type of unemployment that is eliminated when an economy reaches full employment, as opposed to frictional or structural types.
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the economic condition when everyone who wishes to work at the going wage rate for their type of labor is employed
