MMT Factsheet 4 – What Does Full Employment Mean?

My Modern Monetary Theory (MMT) factsheet series: plain language summaries of key MMT topics. This one explores what ‘full employment’ really means.

Harris & Ewing, photographer, Public domain, via Wikimedia Commons

Modern Monetary Theory (MMT) Factsheets

These factsheets are part of my ongoing mission to make Modern Monetary Theory (MMT) more accessible. Whether you’re just starting to explore MMT or looking to dive deeper, these factsheets aim to break down complex ideas in concise, simple, digestible ways. You can read my factsheets in my regular newsletter format, or you can download them as PDF documents.

In this factsheet, I explore what the phrase ‘full employment’ really means. When a politician or economist says the country is at full employment, you might be surprised to learn they don’t mean that everyone who wants a job actually has one. This factsheet explains what they do mean, and why this masks the reality behind the unemployment numbers. And of course, I explain how MMT defines full employment and why that’s a more useful and effective definition.

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What Does Full Employment Mean?