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.