No, running at full employment does not mean the unemployment rate equals zero percent. Full employment refers to a situation where all available labor resources are being used in the most efficient way possible. This does not imply that every individual is employed.
In reality, there are always some individuals who are between jobs, entering the workforce for the first time, or transitioning to a new career. This phenomenon is known as frictional unemployment. Frictional unemployment occurs due to the natural movement of workers as they seek better opportunities or adjust to changes in the job market.
Moreover, there is also structural unemployment, which arises when there’s a mismatch between the skills workers possess and the skills needed for available jobs. This could be due to technological advancements or changes in the economy that create new industries while making others obsolete.
Consequently, the unemployment rate at full employment typically includes frictional and structural unemployment, leading to a rate that is above zero. Generally, an unemployment rate of around 4-5% is often considered a sign of full employment in most economies, indicating that while the majority of people who want to work can find jobs, there will still be some unemployed due to the factors mentioned above.