Unemployment

Unemployment occurs when someone is willing and able to work but does not
have a paid job. The unemployment rate is the percentage of people in the
labour force who are unemployed. Consequently, measuring the
unemployment rate requires identifying who is in the labour force.

Natural rate of unemployment

 The natural unemployment rate is the minimum unemployment rate
resulting from real or voluntary economic forces.
 It represents the number of people unemployed due to the structure of
the labor force, such as those replaced by technology or those who lack
the skills to get hired.
 Natural unemployment is commonplace in the labor market as workers
flow to and from jobs or companies.
 Unemployment is not considered natural if it is cyclical, institutional, or
policy-based unemployment.
 Because of natural unemployment, 100% full employment is
unattainable in an economy

Frictional unemployment
Frictional unemployment occurs in a growing, stable economy. Workers moving
from job to job and new workers entering the workforce contribute to frictional
unemployment. Frictional unemployment is also caused by those deciding to
prioritize taking care of their family, returning to school, or finding purpose in
life.

Wait unemployment
One kind of frictional unemployment is called wait unemployment: it refers to
the effects of the existence of some sectors where employed workers are paid
more than the market-clearing equilibrium wage