Fed Struggles to Nail Down Meaning of ‘Full Employment’

The Federal Reserve reversed its rate hikes due to criticism and a focus on full employment. Despite low unemployment rates, inflation did not rise as expected, revealing more slack in the labor market than anticipated. The Fed underestimated the number of discouraged jobless individuals, indicating potential for further employment growth.

What does the term 'discouraged jobless' refer to, and what percentage of the labor market does it represent?

What does the data suggest about the labor market's current state compared to the average from 1995 to 2007?