Does it mean that the unemployment rate is zero when an economy achieves full employment?

Question

One of the australian government's main economic goals is to achieve "full employment". Explain what you understand by this term. Does it mean that the unemployment rate is zero when an economy achieves full employment?

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Answer 1

No, the unemployment rate is never zero. Usually there is some accepted rate which is seen as a base rate - say 3%. That covers those who are unemployable or who are moving from one job to the next. Full employment means that almost everyone who can work and is trying to work is able to find employment.

Answer 2

As long as a federal government has a vested interest in the unemployed, there will never be a 'zero' unemployment rate. Get the State out of the business of charity and you might actually see full employment. Otherwise, 4% to 5% is as close as you will ever see.

Answer 3

Explain Full Employment