The unemployment rate and its dynamics

Full-time does not imply 100% employment of the total number of adult able-bodied population.There is unemployment, which is considered reasonable or normal.

unemployment rate is represented as a percentage of the unemployed able-bodied population, which does not include pensioners, students, prisoners, and the citizens of 16 years, the labor force, including persons involved in the military service.At full employment, unemployment rate equal to the level of frictional unemployment and structural in an amount that isnatural rate of unemployment, which is a set of structural and frictional unemployment, and the unemployment rate is closely linked to the stability of the economy, when the level of the expected inflation rate corresponds to the actual level, and when the actual national product in the natural damage.

dynamics of unemployment, it is obtained by comparing the changes in unemployment rates in the different years.The dynamics of unemployment is directly related to the dynamics of GDP.2% i

ncrease in the actual volume of GDP reduces by 1% and the unemployment rate, by contrast, the unemployment rate will rise by about 1% due to a decrease of the actual volume of GDP by 2%.Therefore, unemployment is the natural state of the labor market, but it allowed fluctuations of the natural rate.

Capacities in cyclical unemployment is not used in full and the value of GDP, respectively, less than that which would be at full employment.

gap between GDP and the cyclical unemployment A. Oukenom empirically found a direct, stable relationship.Okun's law shows the relationship between the volume shortfall in GDP and unemployment.

unemployment and employment are important macroeconomic indicators, which determine the effectiveness of the economic policy pursued by the state.State regulation is carried out complex legal, economic, administrative and organizational measures, which are aimed at achieving production efficiency due to full employment.To improve the level employment performs state regulation of the labor market and employment.In addition to the direct impact on the labor market, the government used indirect methods, in Vol. H. Monetary, tax and depreciation policy.

Statistics show that between employment and inflation, there is a feedback, in other words, this relationship applies to the general price level and unemployment.It is worth noting that inflation - bloating prices, in other words - a reduction in the purchasing power of the monetary unit, its depreciation.The rise in prices is observed when the rate of increase of money in circulation above the GDP growth rate.Decline in GDP accelerated increase in the money supply.Inflation, in turn, has a negative impact on wages.AUPhillips has revealed a pattern between the proportion of unemployed and change in nominal wages.AUPhillips, investigating the ratio of inflation and unemployment, found that between the magnitude of unemployment and the rate of rise in prices have an inverse relationship.Its graphic representation has been called the Phillips curve.According to the Phillips curve, unemployment is high in the low inflation rate, and with increasing inflation, it decreases.Based on the Phillips curve, it is expected to reduce the possibility of unemployment in terms of inflation or raise unemployment, suppressing the rise in prices.However, in the real economy do not always reflect the results of this curve.

general price level and unemployment is studied:
a) micro - and macroeconomics;
b) normative and positive economics.