Same issue in my country with employment rates. Yes, some of those have been looking for work for so long that they slide from looking to "not looking" automatically. However at the same time, some of those people actually don't want to work.

And if they don't want to work, why would that impinge upon full employment, because what is the plan? Force people to work who are retired, or don't want to? Work or go to jail? "Full employment" is always presumed to be "people wanting to work can find it".

Giving up looking is not necessarily the same as not wanting a job.