FIGURE 6-1
imageThe Unemployment Rate and the Natural Rate of Unemployment in Canada There is always some unemployment. The natural rate of unemployment is the average level around which the unemployment rate fluctuates. (The natural rate of unemployment for any particular year is estimated here by averaging all the unemployment rates from ten years earlier to ten years later. Future unemployment rates are set at 6 percent.)
Source: Statistics Canada, CANSIM Series 2461224, and authors’ calculations.