Why is there unemployment? If job finding were instantaneous (f=1), then all spells of unemployment would be brief,and the natural rate would be near zero. -There are two reasons why f<1: 1.job search 2.wage rigidity Return CHAPTER 6 Unemployment slide 12slide 12 § If job finding were instantaneous (f = 1), then all spells of unemployment would be brief, and the natural rate would be near zero. § There are two reasons why f < 1: 1. job search 2. wage rigidity 1 Return