Macroeconomics

‭the skills and qualifcations of workers and the requirements of available jobs.‬ ‭Therefore,‬ ‭there is no “zero unemployment” in an economy‬ ‭.‬

‭NRU = Frictional unemployment (including seasonal unemployment) + structural unemployment‬

‭Therefore,‬ ‭the‬ ‭deviation‬ ‭of‬ ‭the‬ ‭actual‬ ‭unemployment‬ ‭rate‬ ‭from‬ ‭the‬ ‭natural‬ ‭rate‬ ‭of‬ ‭unemployment‬ ‭is‬ ‭cyclical unemployment.‬ ‭ ⇒ Actual rate of unemployment = NRU + cyclical unemployment rate‬

‭Why‬ ‭is‬ ‭it‬ ‭important‬ ‭for‬ ‭governments‬ ‭and‬ ‭international‬ ‭organizations‬ ‭to‬ ‭track‬ ‭and‬ ‭report‬ ‭unemployment rates?‬ ‭Unemployment‬‭rates‬‭are‬‭often‬‭tracked‬‭and‬‭reported‬‭by‬‭governments‬‭and‬‭international‬‭organizations‬‭as‬ ‭a‬ ‭measure‬ ‭of‬ ‭labor‬ ‭market‬ ‭health‬ ‭.‬ ‭Governments‬ ‭may‬ ‭implement‬ ‭various‬ ‭policies‬ ‭and‬ ‭programs‬ ‭to‬ ‭address different types of unemployment.‬ ‭It's‬ ‭important‬ ‭to‬ ‭note‬ ‭that‬ ‭policymakers‬ ‭aim‬ ‭to‬ ‭keep‬ ‭the‬ ‭unemployment‬ ‭rate‬‭at‬‭a‬‭level‬‭close‬‭to‬‭the‬ ‭natural‬‭rate‬‭of‬‭unemployment‬ ‭.‬‭Achieving‬‭and‬‭maintaining‬‭a‬‭low‬‭and‬‭stable‬‭unemployment‬‭rate‬‭is‬‭a‬‭key‬ ‭goal of economic policy, as it reflects a healthy and productive workforce.‬

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