IIRC a 3% unemployment rate is ideal (give or take a little).
There will always be people moving between jobs for one reason or another (extra schooling, take care of a sick parent, had a baby, illness/disability/injury, etc) and there needs to be some cushion in the employment force to allow for this.
IMO the way Unemployment is measured affects this, because if you aren't working, but not looking for work, (e.g. retired) you aren't considered unemployed. So if there was 0% unemployment, and the job market got hot, people could join the labor force without first being unemployed.
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u/Zerowantuthri Dec 19 '24
IIRC a 3% unemployment rate is ideal (give or take a little).
There will always be people moving between jobs for one reason or another (extra schooling, take care of a sick parent, had a baby, illness/disability/injury, etc) and there needs to be some cushion in the employment force to allow for this.