Employment and unemployment rate Employment rate and unemployment rate are the indices that measure joplessness of an economy In particular Employment rate Number of employed Labor force Unmployment Rate Number of Unemployed Labor force The Natural Rate of Unemployment is the unemployment rate at equilibrium or at the steady state A Simple Model of Natural Rate of Unemployment (presented in class) 66 Employment and Unemployment Rate ➢ Employment rate and unemployment rate are the indices that measure joplessness of an economy. In particular, Labor Force Number of Employed Employment Rate = Labor Force Number of Unemploye d Unmploymen t Rate = ➢ The Natural Rate of Unemployment is the unemployment rate at equilibrium or at the steady state. ➢ A Simple Model of Natural Rate of Unemployment (presented in class):