Question

what are the sources for natural unemployment

Answer 1

Natural unemployment means the proportion of the workforcd who are unemployed.here an economy is in a steady state of full employment.full employment does not mean zero unemployment.

Natural rate of unemployment may feature involuntary unemployment.this natural unemployment is combination of frictional and structural unemployment that persists in an efficieng ,expanding economy.

Occurance of disturbances cyclical shift in investment sentiment .

Sources of natural unemployment are -

1) Frictional unemployment -it is temporary unemplyment which is created when worker switch jobs.In this type of natural unemployment number of worker is equal to the number of jobs.

2) Structural unemployment -it is relatively permanent unemployment.It is created because desired skill for the job is not equal to the skils of the worker.