Does anyone know how to calculate the frictional rate of employment...given the following information...
The structural unemployment rate of 2.8%, actual unemployment rate of 7% and cyclical unemployment is 2.0%
I just need to know the formula to use??
I meant frictional unemployment rate
I believe the types of unemployment should add up. That is, total=structural+cyclical+frictional
To calculate the frictional rate of employment, you can use the formula:
Frictional Rate = Actual Unemployment Rate - Structural Unemployment Rate - Cyclical Unemployment Rate
Given the information provided, the formula becomes:
Frictional Rate = 7% - 2.8% - 2.0%
Now, let's solve it:
Frictional Rate = 7% - 2.8% - 2.0%
= 4.2% - 2.0%
= 2.2%
Therefore, the frictional rate of employment is 2.2%.