Study Finds Natural Unemployment Rate Has Increased, Impacting Economic Recovery
The natural rate of unemployment in the US has increased since the recession, likely due to lasting effects from the economic shocks. This means the current natural rate is estimated to be between 5.6% and 6.9%, with the preferred estimate at 6.25%. Factors like labor market mismatch and extended unemployment benefits have contributed to this rise, but only a small portion is expected to persist beyond five years.