Unemployment means that when people want jobs they can’t get them. So retired people or students, although don’t have a job, won’t be counted in unemployment rate. Only people who are looking for a job and can’t get it are considered when talking about unemployment.
The goal is 5% unemployment rate. This is considered healthy (?). (what is unemployment rate and how is it calculated?)
Four main kinds of unemployment:
- cyclical
- natural
- structural
- frictional
- seasonal Natural unemployment in healthy economy will account for 5% of unemployment rate