Full Employment
Full employment is an economic situation in which all available labor resources are being used in the most efficient way possible. It is a situation where there is no cyclical or deficient-demand unemployment. This means that everyone who is willing and able to work is able to find employment. Full employment is a macroeconomic goal and is usually associated with a low rate of unemployment. It is also a goal of many governments and central banks.
History of Full Employment
The concept of full employment has been around since the early 20th century. It was first introduced by British economist William Beveridge in his book, Full Employment in a Free Society. In the book, Beveridge argued that full employment was essential for a healthy economy and society. He also argued that it was the responsibility of the government to ensure that everyone who wanted to work was able to find employment.
The concept of full employment was further developed by John Maynard Keynes in his book, The General Theory of Employment, Interest and Money. Keynes argued that full employment was necessary for economic stability and growth. He also argued that government intervention was necessary to achieve full employment. In the 1940s, the United States government adopted the Full Employment Act, which set a goal of achieving full employment.
Table of Comparisons
| Full Employment | Unemployment Rate |
|---|---|
| 4% | 0% |
| 5% | 1% |
| 6% | 2% |
| 7% | 3% |
| 8% | 4% |
Summary
Full employment is an economic situation in which all available labor resources are being used in the most efficient way possible. It is a macroeconomic goal and is usually associated with a low rate of unemployment. The concept of full employment has been around since the early 20th century and was further developed by John Maynard Keynes. For more information about full employment, you can visit websites such as the U.S. Bureau of Labor Statistics, the International Labour Organization, and the Organisation for Economic Co-operation and Development.
See Also
- Unemployment
- Labor Force Participation Rate
- Employment-to-Population Ratio
- Underemployment
- Labor Market
- Gross Domestic Product
- Productivity
- Inflation
- Monetary Policy
- Fiscal Policy
