Why will we never reach a zero% unemployment rate?

There are three kinds of unemployment: Frictional, cyclical, and structual.

Frictional unemployment are people quitting jobs, getting fired, moving, just graduating from school, reentering the workforce after having children, and so on. These people are unemployed only temporarily but still fit into the unemployment statistics.

Cyclical unemploymet is unemployment that occurs due to the business cycle. When there is a recession, there are people put out of work. The general economy is not experiencing this right now (outside of a few industries like home building and mortgage lenders). That is why we have a historicaly low unemployment rate right now.

Structual unemployment is when there is demand for labor, but the unemployed do not have the desired skils needed, or are just incompedident, lazy, or cant take any resposibility.

Assuming that there is not a recession going on, the cyclical unemployment does not exist, but there are always people who fit into the other two.

People change jobs all the time, for good or bad, and there is always a segment of the population that is lazy, incompedint, etc, and just cant hold down a job. These two reasons are why %26quot;full employment%26quot; is considered to be around 5% or so historically.

But what you have to keep in mind, is that a 5% unemployment rate does not mean 5% of the population can never find work. It includs the temporary people. The average time of unemployment is about 8 - 9 weeks right now.

Only about .5% - 1% of people fit whithin the long term structual enemployment who just cant get and hold onto jobs.

Why will we never reach a zero% unemployment rate?heart rate monitor

We are constantly adding to the work force with people leaving school or returning to work after a hiatus.

0% unemployment is not even a desirable goal. If we have that, there is no labor pool for expansion of existing businesses or for the opening of new ones.

Why will we never reach a zero% unemployment rate?

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I will bring an example to show that it%26#039;s impossible: one of the types of unemployment studied by economics is frictional unemployment, which counts those who are seeking a new (possibly better) job or changing it. Since workforce is not %26quot;binded%26quot; to workplace there will always be some people unemployed. Further, a lot of people can be considered economically active (i.e. be part of those who can work), but still be out of actual workforce due to certain reasons (students, unwillingness to work, etc.).|||Because the bible says there will always be the poor.|||There are different types of unemployment which are unavoidable such as

Frictional unemployment wen pple move from 1 job 2 another:

Seasonal Unemployment due to changing seasons%26amp; demand for labour depending on the nature of job;

Cyclical unemployment which is cozd by fluctuations in demand for labopur, depending on the economic upswings or recession, In addition to that the number of pple employed depends on the demand for labour by firms. Firms will not hire more labour than they need just to lower unemployment bcoz they are profit making units

then Structural unemployment cozd by the situation in which pples%26#039; skills do not match with the job requirement skills. This is also aggravated by a growing population rate which is larger than the GDP growth rate

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