This natural rate of unemployment calculator takes the figures you already have and applies the relationship behind natural rate of unemployment calculations for you, giving natural rate of unemployment, fu rate and su rate from frictionally unemployed, total labor force and structurally unemployed.
What Is the Natural Rate of Unemployment Calculator?
The natural rate of unemployment calculator takes frictionally unemployed, total labor force and structurally unemployed and turns them into natural rate of unemployment, fu rate and su rate.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Natural Rate of Unemployment Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with frictionally unemployed set to 10, total labor force set to 5, structurally unemployed set to 2, the calculator returns natural rate of unemployment of 2.4, and fu rate of 200, and su rate of 40. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out natural rate of unemployment?
Enter frictionally unemployed, total labor force and structurally unemployed. The calculator then works through the relationship and reports natural rate of unemployment, fu rate and su rate.
What does the natural rate of unemployment actually calculate?
It takes frictionally unemployed, total labor force and structurally unemployed and converts them into natural rate of unemployment, fu rate and su rate using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter frictionally unemployed?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Is the answer exact?
It is as exact as the formula and the inputs allow. The method itself is the standard one for this problem, so the only sources of error are the figures you enter and the precision you ask for.
Does anything you type get stored?
No. The whole calculation runs inside your browser, and nothing you enter is uploaded, logged or sent anywhere.