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Natural Rate of Unemployment Calculator

Finance
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Calculates the natural rate of unemployment, representing the baseline level of unemployment in an economy when it's operating at full potential and cyclical unemployment is zero.

How To Use

How to use this calculator

Start with your values, or try a preset.

Step 1

Enter Frictional Unemployment Rate (%) and Structural Unemployment Rate (%) in the units shown.

Step 2

Read Natural Rate of Unemployment (%) in the results panel. Results update as you change the inputs.

Step 3

Choose a preset to load an example, then adjust the values for your situation.

Worked Examples

Example calculations

See the inputs and their calculated results.

Low Frictional & Structural

Frictional Unemployment Rate (%): 2 %; Structural Unemployment Rate (%): 2 %

Natural Rate of Unemployment (%): 4 %

Moderate Rates

Frictional Unemployment Rate (%): 2.5 %; Structural Unemployment Rate (%): 3 %

Natural Rate of Unemployment (%): 5.5 %

High Frictional

Frictional Unemployment Rate (%): 4 %; Structural Unemployment Rate (%): 3 %

Natural Rate of Unemployment (%): 7 %

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Important

Treat this output as a planning estimate and confirm rates, tax rules, and contract terms before making financial decisions.