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Employment Levels Regardless of where we are, unemployment occurs and has since became an issue in our everyday lives in which governments have constantly implementing policies to tackle such problems. Employment does not only refer to the labor market, but also in the allocation of scarce resources into its most efficient uses. Full employment occurs when all unemployment is frictional, seasonal, or structural and there is no cyclical unemployment or at it’s minimal. At full employment, real GDP is at potential real GDP or the natural rate of output. It simply means what is produce is at its peak or the ability at which a country is performing at. However, full employment does not mean low unemployment in the labor sector. One of the best reasons might be the process of change that creates frictions and dislocations, which is beyond control, a sign of positive indication our modern society.
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