216
MACROECONOMICS
The
natural rate of unemployment changes over time due to such factors as
changes in the age composition of the labour force. In the United States, the
natural rate has declined in the last 15 years. This is some times explained as
due to the rising average age of US workers.
12
Older workers are not as prone
to change jobs, a reduction in frictional unemployment, and also have greater
experience and skills (a reduction in structural unemployment).
In macroeconomics
FULL
EMPLOYMENT
occurs when there is no cyclical unem-
ployment. There will still be the existence of seasonal, frictional, and structural
unemployment ...
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