Rising Natural Rate of Unemployment: Structural Shift or Temporary Hurdle?
The U.S. unemployment rate has gone up since the 2007-2009 recession. Researchers looked at different job market indicators to see if this increase is temporary or permanent. They found that the natural rate of unemployment has gone up by almost 1% since before the recession. Factors like job mismatches, long-term unemployment benefits, and economic uncertainty are partly to blame. But most of the increase is likely not permanent.