What does "full employment" mean in economic terms?

In economic terms, "full employment" refers to a situation where all individuals who are willing and able to work can find employment. This does not imply that the unemployment rate is zero, as there will always be some level of frictional unemployment due to people transitioning between jobs, entering the workforce, or re-entering after a period of absence.

Full employment indicates that the economy is operating at an optimal level, utilizing its labor resources efficiently without the presence of cyclical unemployment, which occurs during downturns. It reflects a healthy job market where the demand for labor meets the supply, allowing individuals to find jobs that align with their skills and preferences. Therefore, the notion that everyone can find employment represents the essence of "full employment" in macroeconomics.