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

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## 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 number of people in the labor force.

## Natural Rate of Unemployment Definition

A natural rate of unemployment is defined as the number of people that are expected to be unemployed in a healthy economy.

## Natural Rate of Unemployment Example

How to calculate a natural rate of unemployment?

**First, determine the number of people frictionally unemployed.**Calculate the number of people frictionally unemployed.

**Next, determine the number of people structurally unemployed.**Calculate the number of people structurally unemployed.

**Next, determine the total labor force.**Calculate the number of people in the labor force.

**Finally, calculate the natural rate.**Calculate the natural rate of unemployment.

## FAQ

**What is natural unemployment?**

Natural unemployment is the rate at which people are unemployed in a healthy 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.