Therefore, the BLS data understates the unemployment rate. Labor participation rate is the proportion of working age persons who are in the labor force. Structural unemployment is due to changes in the structure of the economy or demand for labor. The change may be also due to geographic distribution of jobs. Seasonal unemployment is the unemployment that fluctuates with the seasons of the year.
Full employment is the level of frictional and structural unemployment.
Full employment does not mean zero unemployment. The full employment of unemployment rate is also referred to as the natural rate of unemployment. The natural rate of unemployment is the unemployment that would exist in the absences of cyclical unemployment. The natural rate of unemployment is achieved when labor markets are in balance. That is the number of job seekers equals the number of job vacancies.