natural rate of unemployment
- noun the level of unemployment which can be reached when the labour market is in equilibrium, i.e. when everyone who wants a job has one
- (written as Natural Rate of Unemployment)The rate of unemployment that is (just) consistent with a zero inflation rate. Although there may be nothing 'natural' about it, it does appear to be determined by factors outside the conventional fiscal and monetary instruments of government (for example, such 'structural' factors as customary employer and trade union practices). Deregulation and greater flexibility of working practices are argued to be some means by which the natural rate might be reduced.
- synonymnon-accelerating inflation rate of unemployment (written as Natural Rate of Unemployment)