full employment

n (Economics) a state in which the labour force and other economic resources of a country are utilized to their maximum

full employment

When all those who desire a job are employed and only frictional unemployment remains.

Thesaurus

Noun

full employment - the economic condition when everyone who wishes to work at the going wage rate for their type of labor is employedeconomic condition - the condition of the economy

Translations

full employment

the policy of many governments in the late 1930s and in the immediate postwar period, which was to seek to maintain high levels of employment. In practice this has usually meant a level of employment below that in which all those seeking work are employed.
(KEYNESIAN ECONOMICS) the level of employment which a capitalist economy can sustain (e.g. without excessive inflation). KEYNES recognized that the level of unemployment would always be greater than zero, owing to the number of workers changing jobs, some seeking jobs who were unfit for work, etc., but he assumed that, by government management of demand, higher levels of employment could be sustained than in the past.

In fact, the levels of ‘full employment’ that Keynes believed possible have proved difficult for governments to obtain without leading to inflationary pressures on the economy (see also INFLATION, MONETARISM).

full employment

Full Employment

A situation in which there is no cyclical unemployment. Full employment does not mean there is no unemployment, since there may be frictional unemployment as persons move from old positions into new ones. Some economists hold that full employment occurs when unemployment falls to the rate below which inflation accelerates, though other economists dispute this idea. See also: NAIRU.

full employment

see ECONOMIC POLICY.

full employment

the full utilization of all available labour (and capital) resources so that the economy is able to produce at the limits of its POTENTIAL GROSS NATIONAL PRODUCT. Full employment is one of the main objectives of MACROECONOMIC POLICY. In practice, of course, 100% employment cannot be achieved. Inevitably there will always be some unemployment present because of labour turnover and people spending time searching for and selecting new jobs, and because of structural changes in the economy - job losses in declining trades that require people to transfer to new jobs created in expanding sectors. Accordingly, a more realistic interpretation of full employment suggests itself: full employment is achieved when the number of registered unemployed (see UNEMPLOYMENT RATE) is equal to the number of job vacancies (see VACANCY RATE). Even these measures, however, do not give an accurate estimate because many groups, like housewives and older workers, may fail to register as unemployed when job prospects are bleak even though they wish to work (DISGUISED UNEMPLOYMENT).

For macroeconomic purposes, however, most governments tend to specify their full employment objectives in terms of some ‘targeted’ level of unemployment (e.g. 5% of the total labour force), although the exact target level is rarely publicly disclosed. See UNEMPLOYMENT, FIXED TARGETS ( APPROACH TO MACROECONOMIC POLICY), SUPPLY-SIDE ECONOMICS.

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Words related to full employment

noun the economic condition when everyone who wishes to work at the going wage rate for their type of labor is employed

Related Words