Natural Rate of Unemployment Calculator
Natural Rate of Unemployment Calculator
Component |
Description |
Frictional Unemployment |
Unemployment that occurs when people are between jobs or entering the labor market for the first time. |
Structural Unemployment |
Unemployment that occurs due to changes in the industry or economy that make certain skills obsolete. |
Natural Rate of Unemployment |
The sum of frictional and structural unemployment, representing the unemployment rate when the economy is at full employment. |
Formula |
Natural Rate of Unemployment = Frictional Unemployment + Structural Unemployment |
Purpose |
Used to measure the baseline level of unemployment in an economy that is expected due to normal labor market dynamics. |