Full Employment of Labour

Unemployment comprises of the people who aren't working but are actively seeking employment.

Unemployment rate = Unemployed People/Total Labour Force X 100%

Labour Force = Employed + Unemployed (Age 15+)

Labour Force Participation Rate = Labor Force/Civilian Population Over 15 X 100%

Types of Unemployment-

General or Cyclical Unemployment

-Depends on level of economic activity

Frictional Unemployment
-people between jobs

Seasonal Unemployment
-temporarily jobless between seasons
-government not interesting in correcting cause its temporary

Structural Unemployment
-Firms downsizing/restructuring

Hardcore Unemployment
-ownself sohai

Hidden Unemployment
-Discouraged from working, but would wanna work but not seeking job. (Not counted in labour force)

Underemployed
-Want full-time but only get part-time

Natural Rate of Unemployment = Frictional + Structural + Hard Core
As all these are unavoidable

Acceptable Rate = 5%