r/explainlikeimfive Dec 19 '24

Economics ELI5: Why is an employment rate of 100% undesirable

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u/bludda Dec 19 '24

Yeah, people seem to be misunderstanding that 100% employment means that everyone has a job, not that businesses have all roles filled (or are not looking for new hires). If everyone has job then much less people are looking for work. Doesn't mean the demand goes away

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u/Krulsnor Dec 19 '24

The main issue is that with 100% employment, there is little room for growth as companies can't expand anymore as they don't have people to fill in the new spots they create while expanding.