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Over-full employment
 

 

Empirical studies, especially those made in connection with the Phillips curve, have suggested that there is some minimum level of unemployment consistent with the maintenance of wage and price stability. If unemployment should fall below this level, there will tend to be wage and price inflation, and correspondingly such a level of employment of the labour force is referred to as 'over-full employment'. Essentially, it refers to a condition where demand for goods and services is high relative to the maximum productive capacity of the economy, thus creating inflationary pressures in markets for goods and labour.

Reference: The Penguin Dictionary of Economics, 3rd edt.