Example: ■ Each month,1%of employed workers lose their jobs (s=0.01) ■ Each month,19%of unemployed workers find jobs (f=0.19) Find the natural rate of unemployment: U 0.01 =0.05,or5% L s+f 0.01+0.19 CHAPTER 6 Unemployment slide 10slide 10 § Each month, 1% of employed workers lose their jobs (s = 0.01) § Each month, 19% of unemployed workers find jobs (f = 0.19) § Find the natural rate of unemployment: 0.01 0.05, or 5% 0.01 0.19 U s L s f      1