The book explores why unemployment is high and fluctuates widely, looking at how it affects inflation and whether full employment can coexist with stable prices. It investigates why certain groups have higher unemployment rates and combines macroeconomics with detailed labor market analysis. The authors' model explains the post-war history of OECD unemployment and how wage bargaining and unemployment insurance impact unemployment and inflation. The book offers new theories and extensive empirical analysis, aiming to inform better policy decisions and prevent the negative impacts of high unemployment.