You need to think a topic. Rate of Unemployment Essay

Rate of Unemployment
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The Natural Rate of Unemployment (NRU) is defined as the change in the rates of unemployment over time. Specifically, this is measured by computing the frictional and structural types of unemployment to take into account both personal and systemic factors causing people to be jobless despite their attempts to look for jobs (KhanAcademy.org, n.d.). While five (5) percent is the normal rate of unemployment for the United States, several factors could cause smaller fluctuations in these rates every time.
One example of these factors is possible (and inevitable) errors in data collection such as in the case of cyclical unemployment. Cyclical unemployment defined as the changes in business cycles (i.e., customer demands), which affects the turnover of employees (Amadeo, 2019). Although, this cycle is usually not considered in the computation of NRU due to its “short-term nature”, extreme changes and prolonged trends in these situations could affect the overall unemployment rate of a country. For example, it is said that recurrent lay-offs of employees could lead to an overall decrease in “job experience and decline in motivation” among ...