The concept of "full employment" refers to a situation in which there exists

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Full employment refers to the situation where all available labor resources are being used in the most economically efficient way. This includes the presence of only structural and/or frictional unemployment, which are considered natural forms of unemployment. Structural unemployment occurs when there is a mismatch between the skills of the unemployed and the skills needed for available jobs, while frictional unemployment happens when workers are between jobs or are looking for their first jobs. These types of unemployment exist even in a healthy economy, indicating full employment does not mean a zero unemployment rate.

The Concept of "Full Employment" Refers to a Situation in Which