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