"Full employment" means that some people in the labor force are still unemployed.

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Full employment does not necessarily mean that every single person in the labor force is employed. There may still be some people who are unemployed due to various reasons such as seasonal changes, changes in the economy or industry, lack of skills or qualifications, etc. Therefore, full employment means that the unemployment rate is at its natural rate, where the level of unemployment is consistent with job turnover and job search time. This natural rate of unemployment is typically estimated to be around 4-5% in most developed countries.

"Full Employment" Means That Some People in the Labor Force