9.3.1 Meaning of full employment
Definition: Full employment is the level of employment at which everyone who is willing and able to work at the current real wage has a job, apart from those in frictional and structural unemployment. It does not mean zero unemployment; it corresponds to the natural rate of unemployment (Beveridge suggested about 3%).
🔒 Also in the full notes
- 9.3.2 Equilibrium and disequilibrium unemployment
- 9.3.3 Voluntary and involuntary unemployment
- 9.3.4 The natural rate of unemployment
- 9.3.5 Patterns and trends in (un)employment
- 9.3.6 Labour mobility
- 9.3.7 Policies to correct unemployment
- Exam practice: 4 practice questions
- 3 exemplar 20-mark essays with full model answers, mark breakdowns and common mistakes
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