Full employment
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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.
See also
- Career
- Chapter IX of the United Nations Charter
- Corporatism
- Deflation
- Employment
- False consciousness
- International labour standard
- Job guarantee
- Job sharing
- Labour (economics)
- Marxism
- Profession
- Reserve army of labour
- Right to work
- Say's law
- Wage slavery