Full employment, in macroeconomics, is the level of employment rates when there is no cyclical unemployment. It is defined by the majority of mainstream economists as being an acceptable level of natural unemployment above 0%, the discrepancy from 0% being due to non-cyclical types of unemployment. Unemployment above 0% is advocated as necessary to control inflation, which has brought about the concept of the Non-Accelerating Inflation Rate of Unemployment (NAIRU); the majority of mainstream economists mean NAIRU when speaking of "full" employment.
Full employment in microeconomics is when the economy is employing all of its available resources. This simply means that the capital goods and capital resources are at their highest and most efficient within the economy.
Famous quotes containing the words full and/or employment:
“He hung out of the window a long while looking up and down the street. The worlds second metropolis. In the brick houses and the dingy lamplight and the voices of a group of boys kidding and quarreling on the steps of a house opposite, in the regular firm tread of a policeman, he felt a marching like soldiers, like a sidewheeler going up the Hudson under the Palisades, like an election parade, through long streets towards something tall white full of colonnades and stately. Metropolis.”
—John Dos Passos (18961970)
“It is easier for a man to be thought fit for an employment that he has not, than for one he stands already possessed of, and is exercising.”
—François, Duc De La Rochefoucauld (16131680)