What is the natural rate of unemployment in the united states
In February 2020, the unemployment rate was 3.5%. That's at the low end of the range of 3.5% to 4.5% or natural rate of unemployment. If unemployment is less than the natural rate, businesses can't find enough workers to keep operating at full capacity. That could slow economic growth. An increase in unemployment benefits can increase the natural rate of unemployment.ii. An increase in the number of new workers in the labor force increases the natural rate of unemployment.iii. A decline in union membership decreases the natural rate of unemployment.iv. An increase in labor productivity decreases the natural rate of unemployment.