The Unemployment Rate, Frictional unemployment and Cyclical unemployment

The Unemployment Rate:

The number of jobless people categorized by the overall labor force -- the total of the employed and the unemployed. The U.S. Labor Department's Bureau of Labor Statistics conducts the Present Population Survey: a random study of America's households, each month.

Frictional unemployment:

For the time period of recessions and depressions, though, joblessness is absolutely not "frictional."

Cyclical unemployment:

In the U.S. in The Great Depression the joblessness rose to 25%. In Germany through the Great Depression the unemployment rate increased to 33%.

Joblessness rate is the best indicator of how fine the economy is doing comparative to its productive potential.

In the 20th century the U.S. unemployment rate droped as low as 1.5 percent for the period of World War II and as top as 25% during the Great Depression, the primary macroeconomic catastrophe of the precedent century. Not other recession or depression in the nation's record, not even the depression of the early 1890s, came close to the Great Depression's devastating impact.

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