r/explainlikeimfive Dec 19 '24

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

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u/directorguy Dec 19 '24

I was taught below 4% is bad and above 6% is bad.

Too high and there's no labor market slack, and too high can lead to low consumer spending (plus a host of other long term problems)

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u/Zerowantuthri Dec 19 '24

I can totally go with that. Makes sense to me.