FULL EMPLOYMENT Meaning and
Definition
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Full employment refers to a macroeconomic concept that is achieved when the labor market is functioning at its optimal level, where all available human resources are being utilized, and there is no cyclical or involuntary unemployment present in the economy. It is a state in which the demand for labor consistently matches or exceeds the supply, resulting in an economy where everyone who desires a job is able to find suitable employment.
In a full employment scenario, the unemployment rate is typically very low, usually hovering around a natural rate of unemployment. This natural rate includes frictional and structural unemployment, which are considered normal factors inherent in all economies. Full employment encompasses a situation where these types of unemployment are minimized, leaving behind only voluntary or transitional unemployment as workers move between jobs.
When an economy achieves full employment, it signals a strong labor market where workers have greater bargaining power, leading to increased wages and improved living standards. Full employment also contributes to higher production levels, improved efficiency, and economic growth. It is important to note that full employment does not imply that there are no unemployed individuals in absolute terms, as there will always be individuals between jobs or with temporary unemployment due to factors beyond their control. However, under full employment conditions, the overall unemployment level is at its lowest sustainable level and is a desirable objective for policymakers seeking to foster a healthy economy.
Common Misspellings for FULL EMPLOYMENT
- dull employment
- cull employment
- vull employment
- gull employment
- tull employment
- rull employment
- fyll employment
- fhll employment
- fjll employment
- fill employment
- f8ll employment
- f7ll employment
- fukl employment
- fupl employment
- fuol employment
- fulk employment
- fulp employment
- fulo employment
- full wmployment
Etymology of FULL EMPLOYMENT
The word "full employment" has a relatively straightforward etymology.
The term "employment" comes from the Old French word "emploier" meaning "to use, to put into use". The word then evolved into the Middle English word "employen", which meant "to keep busy or occupied". Over time, "employment" came to refer specifically to the state of being engaged in paid work.
The word "full", on the other hand, derives from the Old English word "ful", which meant "complete, filled up". It has roots in the Proto-Germanic word "fullaz" and is related to the Old Norse word "fullr".
When these two words are combined to create the phrase "full employment", it refers to a situation in which the economy provides employment opportunities for all individuals who are willing and able to work.
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