Structural and cyclical unemployment are unavoidable; therefore, the economy is in full employment when frictional unemployment is zero.

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Structural and cyclical unemployment are unavoidable, but frictional unemployment is a natural and temporary part of the job search process. Therefore, it is unlikely that the economy can ever achieve zero frictional unemployment. Instead, economists often use the term "full employment" to describe a situation where there is a low level of unemployment that is consistent with a healthy labor market.

Structural and Cyclical Unemployment Are Unavoidable; Therefore, the Economy Is