For the purposes of this post I define full employment as the ability for everyone to get a job who wants a job.
Here are three things off of the top of my head that can eliminate unemployment:
1. Free Market Money: A stable currency that is not subject to manipulation via government printing presses and central bank credit expansion and contraction. A stable currency allows stability in the market which rewards savers and investors who provide capital to entrepreneurs who then invest in goods producing businesses. This creates employment, and increased economic prosperity for all. History has shown that gold and silver tend to fill this role best.
2. Elimination of Minimum Wage Laws: Minimum wage laws actually create unemployment by preventing workers from bidding on jobs at lower rates than their competitors. An excellent illustration of this free market competition is used book sales at Amazon.com. Sellers of used books can underbid other sellers in order to have theirs selected first. The same concept works in the job market. Anyone who wants to work can underbid his competitor and get the job. The resulting benefits to all are lower labor costs which flow down to lower costs of goods and services. This lowers the cost of living for everyone – including those who are the most competitive in offering their labor. Imagine the dramatic increase in employment (employers could afford to hire) and the dramatic increase in the standard of living due to lower prices.
3. Respect for Property Rights: Coercive Government is the major offender here. By interfering with contracts, changing laws to serve the latest pressure group, and the outright confiscation of private property through taxation and seizure, they have frozen up economic activity. Because of this interventionism it is practically impossible for entrepreneurs and capitalists (the owners of capital) to make long term commitments and investments in industry since they have no idea what rights of theirs, if any, will still be protected during the investment period. This is why most banana republics never prosper – capitalists will not invest when their property rights are not respected.
4. Elimination of all Occupational Licensing: Okay, I said “three things” but I came up with one more. Occupational Licensing simply restricts competition and keeps prices artificially high. There are better ways to judge competency. Independent rating agencies like Underwriter Laboratories and Consumer Reports are more effective. The information age has also enabled highly effective rating models such as those used by eBay, Angie’s List, and TripAdvisor – all provided on a voluntary, real time basis. New entrants to occupations can prove their competence through apprenticeship followed by the endorsement of skilled and respected professionals who can “vouch” for the new entrants’ competency by putting their name and reputation behind the successful apprentice.
Shorter Answer: Eliminate Government by Coercion