The reason why unemployment rate is at 10%

[Cache Landing]

Quote from blackjack007:

you're forgetting there's a floor in the UE rate.

the minimum unemployment rate is around 3%. it never goes below this, even if GDP is growing 10%. the reason is, there's always some people who are between jobs. maybe their company went bankrupt and it takes 1 week to find a new job. or perhaps someone got fed up and quit before even finding a new job, but they're confident they can find something soon. or maybe someone was an incompetent employee and was fired.

you are referring to friction. the various types of friction are mostly represented in my groupings.

 

[hippie]

10% only, what a joke. Here is some charts for how is counted.

http://www.ritholtz.com/blog/2011/01/employment-chart-festival/

 

[pcp123]

The only reason why unemployment is at 10% is because employment is at 90%.

 

[HowardCohodas]

Quote from pcp123:

The only reason why unemployment is at 10% is because employment is at 90%.

This is your first post so I will be gentle. This does not show a useful understanding of what the unemployment statistics mean.