National economy’s unemployment level. Persists even when the labor market is in equilibrium. It is considered to be equivalent to the voluntary unemployment level because the thinking asserts that all those who want employment are already employed. Conceptually, a national unemployment rate was used by the US monetarist economist Milton Friedman to assert that in the long run neither fiscal policy nor monetary policy has any effect on the unemployment level. He proposed that they affect only the rate of inflation. Also refer to natural employment rate.
Link to This DefinitionDid you find this definition of NATIONAL RATE OF UNEMPLOYMENT helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary