The absence of any excess supply of labor, so that any worker willing to work at prevailing wages can get a job.
In a fully employed economy, no unemployment would exist because of deficient demand—only frictional unemployment (workers investing time in search for better jobs), voluntary unemployment, or structural unemployment (workers lacking the skills or location now demanded by employers) would occur. Early drafts of the Employment Act of 1946, which established the president’s Council of Economic Advisers and the Economic Report of the President, would have committed the U.S. government to a Keynesian policy of managing aggregate demand to maintain full employment, a proposal shaped by experience with mass unemployment in the 1930s. The final version of the Employment Act of 1946 only established high levels of
