During the course of a year, the labor force consists of the same 1,207 people. Of these, 59 lack skills that employers desire and hence remain unemployed throughout the year. At the same time, every month during the year, 34 different people become unemployed, and 46 other different people who were unemployed find jobs. Also, 14 different people are unemployed due to seasonal factors. 30 people are unemployed due to the overall decline in the economy. Based on this information, calculate the natural rate of unemployment. Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13
During the course of a year, the labor force consists of the same 1,207 people. Of these, 59 lack skills that employers desire and hence remain unemployed throughout the year. At the same time, every month during the year, 34 different people become unemployed, and 46 other different people who were unemployed find jobs. Also, 14 different people are unemployed due to seasonal factors. 30 people are unemployed due to the overall decline in the economy. Based on this information, calculate the natural rate of
Natural rate of unemployment:
The active participants of the labor force who do not have a job or are at temporary layoffs are called the unemployed sector.
The ratio of unemployed people to the entire labor force is called the unemployment rate
Now, the natural rate of unemployment is the rate when an economy is running at its potential growth rate.
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