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Response to what is natural rate of unemployment and how can be reduced?

from Robert Javin-Fisher (robert.javin-fisher@exeter.ox.ac.uk)
The natural rate of unemployment represents a level of employment such that everyone who wants jobs have one. It is also known as the NAIRU or non-accelerating inflation rate of unemployment. The natural rate is therefore made up by those who cannot work and those who do not choose to work. The government cannot really reduce this level given that, with reference to the NAIRU, any level below it leads to massive inflation and thus the market can only stand the reduction for a short while. However through education schemes etc.. the government may be able to persuade people back into work, but even so there may not be jobs for them.
(posted 7913 days ago)

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