have you had a basic economics course?

Question

what is considered full employment in America?

and what is the reason this number is considered full employment?

Answer 1

Yes.....full employment is 3% unemployed
There are 3 types of unemployment
Cyclical - varies with the business cyce
Structural - skills do not match demands
Frictional - people who are changing jobs/careers
The frictional segment is around 3% of the total workforce
Societal dropouts do not count in the total workforce

Answer 2

Yes.

The definition of 'full employment' is not an easy one. However, I believe in the US, back in the 70s, a target of 4% unemployment was legislated as 'full employment.' I don't recall the exact rationale, but they probably managed to find some economists who could back up the number.

Depending on the theories you're working with, 'full employment' might be a specific number (like 0% or 4%) or a range.

IMHO, the rate of unemployment at full employment would be that of 'frictional unemployment' within the market in question. But then, I don't buy into the idea of persistent 'structural unemployment.'

Answer 3

"Full" employment actually means anywhere from 3% - 5% unemployment, with "unemployment" meaning "people who are actively looking for work". The *actual* unemployemnt rate is probably closer to 8%, if you count the people who aren't trying to get a job.

No, not every citizen can have a job at a given time and plenty of people are underemployed (they just don't make enough).

Answer 4

Don't forget to account for the number of people who have made a conscience decision not to participate in society.

They are not employable because they refuse to be.

No one is to blame for that and there is no policy that is going to control the number.

Answer 5

Looks like you have your answer.

A good follow up question would be, "How is this information collected?" and "Could anyone slip through the cracks and not be reported in the numbers?"

Margin of error