In economics, full employment does not mean that 100% of the labor pressure is employed. Even when the actual GDP is at viable GDP, frictional and structural unemployment exists in the economy. Therefore, full employment is when cyclical unemployment is zero.
Full employment embodies the best possible amount of knowledgeable and unskilled labor that can be employed inside an financial system at any given time. True full employment is an ideal—and probable unachievable—situation in which all and sundry who is willing and able to work can locate a job, and unemployment is zero.
Economists estimate that the full employment charge is between 94 and ninety six percent (meaning the unemployment charge is from 4 to 6 percent). Some unemployment is inevitable – even healthy.
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