28 - - - - - The natural rate of unemployment is the...

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- The natural rate of unemployment is the unemployment that does not go away on its own even in the long run o Frictional unemployment – occurs when workers spend time searching for the jobs that best suit their skills and tastes Short-term for most workers o Structural unemployment – occurs when there are fewer jobs than workers Usually longer-term - Job search – workers have different tastes and skills, and jobs have different requirements – job search is the process of matching workers with appropriate jobs o Sectoral shifts are changes in the composition of demand across industries or regions of the country o Such shifts displace some workers, who must search for new jobs appropriate for their skills and tastes o Seasonal unemployment - Governemtn employment agiences provide information about job vacances to speed up the matching of workers with jobs o Public training programs aim to equip workers displaced from decling industries with the skills needed in growing industries
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This note was uploaded on 10/23/2011 for the course ECON 002 taught by Professor Eudey during the Fall '08 term at UPenn.

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28 - - - - - The natural rate of unemployment is the...

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