the natural rate of unemployment
natural rate of unemployment
(frictional + structural) / labor force, multiplied by 100
full employment
employment an economy experiences when it is operating at the natural rate of unemployment.
cyclical unemployment rate
equal to the actual rate of unemployment minus the frictional and structural unemployment rates
natural rate of unemployment
frictional unemployment rate + structural unemployment rate
natural rate of unemployment
the rate of unemployment equal to the sum of the frictional and structural unemployment rates. A fully employed economy operates at this rate.
structural unemployment
unemployment occurring when the skills that some workers have to offer don't match the skills needed by the firms in the economy.
cyclical unemployment
unemployment resulting from fluctuations in the business cycle.
frictional unemployment
unemployment resulting from workers searching and waiting for jobs.