Full employment could be anything less that one percent unemployment under our current metrics. Individual Liberty should encourage individual responsibility through market based metrics from a form of minimum wage that could clear our poverty guidelines as unemployment compensation; thus, anyone not wanting to stay poor on an at-will basis could become more marketable and compete for a potential, efficiency wage in the market for labor.
And why isn't it getting better? For exactly the reasons you listed. Business owners are simply not willing to risk their finite investment capital when they don't KNOW what their liabilities are going to be and don't have a reasonable expectation for a reasonable return on their investment.
"I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it." --Benjamin Franklin 1776
anything less than one percent could be considered a form of full employment through our form of statism; but, it would be much more accurate.
0.0 to 0.99 could still be classed as less than one percent or zero point something percent. it should be that simple.