What term describes the situation when the number of jobs available in an economy is equal to or greater than the number of people actively seeking work?

Full employment refers to the condition in which all individuals who are willing and able to work at prevailing wage rates can find employment. It does not necessarily imply that the unemployment rate is zero, but it reflects a situation where the number of jobs available is equal to or exceeds the number of job seekers. This concept includes individuals who may be temporarily unemployed while transitioning between jobs or entering the labor market, as well as those in other forms of normal, short-term unemployment, such as frictional unemployment.

In contrast, underemployment refers to individuals who are working in jobs that do not utilize their skills or are part-time when they desire full-time work. Structural unemployment occurs due to shifts in the economy that create a mismatch between the skills of the labor force and the needs of employers, whereas frictional unemployment includes those transiently out of work while searching for a suitable position. Full employment encompasses these various forms of unemployment while assuring that overall job opportunities are sufficient for those willing to work.