Full employment: unemployment rate, participation and NAIRU

What this note covers

1. Full employment as a macroeconomic objective
2. The unemployment rate: who counts and how it is calculated
3. Worked example: calculating the unemployment rate for Larkspur
4. The labour force participation rate and what it can hide
5. NAIRU: the benchmark for genuine full employment
6. Limitations of the unemployment rate and the LFPR as indicators
7. How full employment is examined and what earns full marks

7 sections · 12 key terms & formulas · 6 common mistakes