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Full employment is defined by the International Labour Organisation as the level of employment  where all those available and actively seeking work are able to obtain a job. In a fully employed economy, there will always be people who are between jobs, who have given up looking for jobs or whose skills are not needed at that time. The lowest unemployment rate ever achieved in the USA, was 1.2%, in 1944. The idea of full employment is that so few workers are available that companies start to increase salaries to attract employees - which is inflationary. Economists in the USA have suggested that when the unemployment rate falls below 4% there is upward pressure on wages. Prior to COVID-19, the US unemployment rate fell to 3,5%.

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