Question

Compare the current estimates (Links to an external site.) of the “natural rate of unemployment (Links to an external site.)” with the actual current rate of unemployment in the United States. Is the gap between the unemployment rate and the natural rate of unemployment increasing or decreasing?

Answer 1

Total nonfarm payroll employment rose by 661,000 in September, and the unemployment rate declined to 7.9 percent, the U.S. Bureau of Labor Statistics reported today. These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic and efforts to contain it. In September, notable job gains occurred in leisure and hospitality, in retail trade, in health care and social assistance, and in professional and business services. Employment in government declined over the month, mainly in state and local government education.

The gap between the unemployment rate is decreasing and the rate of employment is incre