Tuesday, February 26, 2013

What is zero unemployment?

I have changed your question to read "zero unemployment"
because I have never heard of the term "zero employment" and because zero employment (no
one working in the whole economy) would really be impossible.  Zero unemployment, on the
other hand, is a term that is used in economics.


Zero
unemployment refers to a case in which the unemployment rate is zero.  Please do not
confuse this with a case in which every single person in the economy is working.  That
is not what unemployment means.


A person is unemployed if
he or she wants a job and cannot find one.  The person is
not unemployed if they do not want a job -- if they are
retired, for example, or if they stay home and take care of their
kids.


So zero unemployment occurs when there is no one in
an economy who wants a job and is unable to find one.

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