[This is part of the series: The Complete Guide To Economics 101.]
What is the target rate of unemployment?
The Target Rate Of Unemployment is (supposedly) the rate of unemployment that is achievable in a given economy.
This figure is nothing more than the government saying, in effect:
“Given the current economy, we believe that an acceptable or ‘good’ unemployment rate is X.”
And, or course, the government changes this rate when it suits them.
Crazy government.
It’s kind of weird, actually.