If Thailand had a job finding rate of 4% and a steady-state natural rate of unemployment of 10% what would the job separation rate be? Flu has hit the ministry of labor of Thailand, in the economist who usually calculate unemployment figures for the country, you have been recruited to fill in for them a separate scenario of concern to the ministry. Assume for each scenario that the economy in Thailand is in steady state.
If there were 2 million unemployed Thailand had a job-finding rate of 15% per month, how many people would lose jobs each month?
If the job-finding rate were 4% per month, what would the average duration of unemployment be?