Question

THIS IS AN ECONOMICS QUESTION

When economists and policy makers talk about full employment, they do not mean 100 percent employment, rather they mean reaching a certain point that still leaves a portion of the labor force unemployed. Why is this the case and what are the kinds of unemployment that exist that do not allow us to reach 100 percent employment?

Answer 1

Employment cannot reach 100 percent because there is always unemployment. The kinds of unemployment that do not allow 100 percent employment are frictional, structural, cyclical and seasonal unemployment