Unemployment Rate?

Question

Why is it difficult to know which measured rate of unemployment corresponds to "full employment," and why is there currently uncertainty about the level of NAIRU?

Answer 1

Some problems are - it's hard to predict precisely how much frictional and structural unemployment requires current economy to function efficiently. Another thing is - business cycles - NAIRU should be adjusted for it.

Current NAIRU for US is 5.2% and unemployment level a bit below this level (5.5% in may).

http://www.bls.gov/

http://www.economagic.com/em-cgi/data.ex...

Answer 2

because no one can decide what unemployed means...

if someone is 55 and retires early living off their savings are they unemployed??

what about a college kid that is 21 and chooses to go to school over a  job.

if someone refuses to accept a job below a certain paylevel so can't find work he will accept does he count???

what about people what are through handicap mental or physical unable to work?

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to me unemployed means one thing .. to you it may mean something different