How urban unemployment occured in 1950

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There are seven causes of unemployment. Four causes create frictional unemployment. This type of unemployment is when employees leave their job to find a better one. Two causes create structural unemployment. That is when workers' skills or income requirements no longer match the jobs available. The seventh cause leads to cyclical unemployment.

Frictional and structural unemployment occur even in a healthy economy. The natural rate of unemployment is between 4.5 percent and 5.0 percent, according to the Federal Reserve. The Bureau of Labor Statistics defines unemployed people as those who are jobless and have actively looked for work in the past four weeks. If they don't keep looking, the BLS doesn't count them in the labor force.

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