If the economy is experiencing less than full-employment, what does it imply?

It implies that the economy is in recession. Less than full employment equilibrium is a macroeconomic term used to describe a situation where an economy's short-run real gross domestic product (GDP) is lower than that same economy's long-run potential real GDP

Experiencing less than full employment means not all able bodies searching for jobs have all been employed

Explanation:

This implies that the economy has a percentage of its workforce unemployed.

Unemployment can result from the following:

Structural or technological unemployment is when people are unemployed because they do not have the necessary skills with which they can secure paid jobs.

Cyclical unemployment is caused a deficient demand in the economy stemming from a low aggregate demand, where government can increase its spending so as to boost the level of production in the economy and also boost aggregate demand in return.

Frictional unemployment is caused lack of precise job market information.

Real wage rate unemployment applies to industries that are heavily unionized, where unemployment is caused unions setting minimum wage above what employers can afford.