Natural rate of unemployment

Natural rate of unemployment is the amount of unemployment that will always exist in the economy even when it is healthy. It is made up of short-term unemployment (people who are between jobs) and the "natural frictions in the labor market," which is the time it takes for employers to find the best employees to fill job openings. The natural rate of unemployment is usually around 4-5%, which means that when 90-95% of people that want a job have one.