Full employment

Definition

Full employment occurs when all available labor resources are being used in the most efficient way possible, essentially indicating minimal unemployment within an economy, except for seasonal and frictional unemployment. It represents a situation where everyone who wants to work and is capable of working can find employment at prevailing wage rates.

Related terms

Unemployment Rate:

The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

Labor Force:

All the members of a particular organization or population who are able to work, viewed collectively.

Economic Efficiency: A situation where all resources within an economy are distributed optimally, leading to maximum output and fulfillment of consumer needs