In this lecture we are going to discuss, what is full employment and its definition as per the syllabus of economics class 12 CBSE Board.
This topic is concerned with Determination of Income and Employment unit of Macroeconomics class 12.
Meaning of Full Employment
In Economics, Full Employment means maximum efficient utilization of the Economy’s available resources (factors of production such as land, labour, capital etc).
This is the overall conceptual meaning of Full Employement.
However in practice the scope of full employment is limited to the only human resources, i.e. labour force.
Definition of Full Employment
An Economy is said to be in full employment situation when the entire labour force in the country is in employment.
Here labour force means that part of the population of the country that is physically and mentally fit adn at the same time willing to work.