Okuzeka
Economics vocabulary · Jobs and Unemployment

Full employment

Meaning in economics, with examples

nounCommon term

In economics, full employment means: A situation in which almost everyone who wants a job can find one; some unemployment still exists because people change jobs or lack the right skills.

In Turkish: tam istihdam

How it is used

Full employment does not mean zero unemployment; economists link it to the natural rate of unemployment, or NAIRU. In the US, maximum employment is one of the Federal Reserve's two main goals, together with stable prices. An economy is at, near or above full employment.

Example sentences

  1. With unemployment at 3.5%, many economists say the country is close to full employment.

  2. Pushing the economy beyond full employment usually leads to higher inflation.

Common collocations

  • at full employment
  • close to full employment
  • maximum employment
  • full employment policy
  • unemploymentThe situation of people who have no job but are available for work and actively looking for one; also the number or share of such people.
  • structural unemploymentLong-lasting unemployment caused by a mismatch between workers' skills or locations and the jobs available, often after technology or industries change.
  • Phillips curveA model showing a short-run trade-off between unemployment and inflation: when unemployment is low, wages and prices tend to rise faster.
  • overheatingA situation in which demand grows faster than the economy can produce, leading to rising inflation, labour shortages and often a large current account deficit.
  • labour marketThe market in which workers offer their time and skills and employers hire them, setting the level of employment and wages.

More terms: Jobs and Unemployment

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This page explains English vocabulary for learners. It is not financial advice.