Question

What unemployment rate, the percentage of the labor force that is out of work, is considered full employment?
4 percent or less
12 percent or less
2 percent of less
10 percent of less

Answer 1

The unemployment rate that is typically considered full employment is around 4 percent or less. This figure represents the level of unemployment that is thought to exist in a healthy economy, accounting for frictional unemployment (people between jobs) and structural unemployment (mismatches in skills). So, the correct answer is **4 percent or less**.