<P> Full employment, in macroeconomics, is the level of employment rates where there is no cyclical or . deficient - demand unemployment . It is defined by the majority of mainstream economists as being an acceptable level of unemployment somewhere above 0% . The discrepancy from 0% arises due to non-cyclical types of unemployment, such as frictional unemployment (there will always be people who have quit or have lost a seasonal job and are in the process of getting a new job) and structural unemployment (mismatch between worker skills and job requirements). Unemployment above 0% is seen as necessary to control inflation in capitalist economies, to keep inflation from accelerating, i.e., from rising from year to year . This view is based on a theory centering on the concept of the Non-Accelerating Inflation Rate of Unemployment (NAIRU); in the current era, the majority of mainstream economists mean NAIRU when speaking of "full" employment . The NAIRU has also been described by Milton Friedman, among others, as the "natural" rate of unemployment . Having many names, it has also been called the structural unemployment rate . </P> <P> The 20th century British economist William Beveridge stated that an unemployment rate of 3% was full employment . For the United States, economist William T. Dickens found that full - employment unemployment rate varied a lot over time but equaled about 5.5 percent of the civilian labor force during the 2000s . Recently, economists have emphasized the idea that full employment represents a "range" of possible unemployment rates . For example, in 1999, in the United States, the Organisation for Economic Co-operation and Development (OECD) gives an estimate of the "full - employment unemployment rate" of 4 to 6.4% . This is the estimated unemployment rate at full employment, plus & minus the standard error of the estimate . </P> <P> The concept of full employment of labor corresponds to the concept of potential output or potential real GDP and the long run aggregate supply (LRAS) curve . In neoclassical macroeconomics, the highest sustainable level of aggregate real GDP or "potential" is seen as corresponding to a vertical LRAS curve: any increase in the demand for real GDP can only lead to rising prices in the long run, while any increase in output is temporary . </P>

Full employment in the us economy means that