The labour market is considered to be at full employment when

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Full employment does not mean that there are no unemployed workers (choice A) as there will always be some level of frictional and structural unemployment. Full employment does not imply that all unemployment is voluntary (choice B) as there may be some involuntary unemployment due to cyclical factors. Full employment is characterized by a situation where all unemployment is frictional or structural (choice C) and there are no cyclical factors causing involuntary unemployment. If there are more unemployed workers than job vacancies (choice D), then the economy is not at full employment.

The Labour Market Is Considered to Be at Full Employment