Economics Online Statistics Home Definitions Videos Quizzes Questions

Full employment

News


Gender pay gap

80% of UK companies and public sectors organisations pay women less than men.

Read more

Full employment

Full employment is a theoretical level of unemployment where only those who are unable to work, or who are temporarily changing jobs, are considered unemployed.

There is no one agreed definition of full employment, and different economists include or exclude different sub-categories of 'joblessness'.

For example, some definitions of full employment exclude those who are not actively seeking work as well as those unable to work and changing jobs.

For example, the International Labour Organisation (ILO) defines full employment as a:

quote bar The level of employment where all those available, able and actively seeking work, can obtain it.

Other economists claim that full employment will exist when an economy has reached a 'natural rate' of unemployment. Some approaches to full employment suggest that the concept should take into account the idea of 'underemployment'. In other words, an individual who is working, but not working to their maximum capacity, cannot be called 'fully employed'.

For example, the ILO acknowledges that definitions of full employment should take account changes in employment patterns, such as higher labour turnover and shorter working hours.


WTO rules

What exactly is the 'most favoured nation' rule?

Read more
Read more
Model agencies collude to fix rates

Regulators find leading model agencies guilty of price fixing.

Read more
Read more
Read more
Read more
Customs unions

Costs and benefits of customs unions.

Read more
New materials

Multiple choice papers for Paper Three.

Read more
Savings ratio

Savings ratio falls to lowest level on record.

Read more