My previous question was yet to be answered please help me out.?

Question

In the economy there is measured of unemployment as high as 4.5% -5% why do economists still refer to the economy as "fully employed"?

Answer 1

My educated guess...

That is such a small percentage it doesnt affect a large group or affect the grand scheme of things... not that that 5% doesnt count... they just arent large enough to make a big difference.

Answer 2

why play, see answer on frictional unemployment in prev question horizontal job search or blatantly putting diff btween the rates of finding and search puts unemployment sdepends on various factors but this phenomenon exists for market forces to exist besides full employment output is max possible output it doesn't b affected by this phenomenon, structural unemplyment is not included in this.......

Answer 3

You repeat a lie often enough it becomes the truth . In the minds of the people .

Answer 4

I believe that is so because there may be job openings that are not easily filled up. The 5% unemployed may be the ones to take these job opportunities, they may just not be aware of it; may be too choosy; may live too far.

If there are job openings enough for everyone to be employed, economists may say that the economy of this certain country is fully employed.

Hope this helps, this is just an intelligent guess.