Natural Rate of Unemployment Calculator

Enter the number of frictionally unemployed people, number of structurally unemployed people, and the total labor force to calculate the natural rate of unemployment.

Natural Rate of Unemployment

The following equation is used to calculate the natural rate of unemployment.

NU = (FU + SU) / LF*100

  • Where NU is the natural rate of unemployment (%)
  • FU is the number of people frictionally unemployed
  • SU is the number of people structurally unemployed
  • LF is the total people in the labor force.

FAQ

What is natural unemployment?

A natural unemployment is the rate at which people are unemployed in a health economy since unemployment will never reach 0%, this usually lies between e-6%.

What is frictionally unemployed?

Frictionally unemployed means that someone is unemployed due to the time it takes to find a job.

What is structurally unemployed?

Structurally unemployed means someone that is unemployed because they cannot find a job due to an imbalance in available jobs and job seekers.


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