It can be shown that a country’s long run unemployment rate is
a function of the finding rate, f and the separation rate,
s. The finding rate is the share of unemployed people
who find a job in a given period (say a month) and the separation
rate is the share of employed people who lose or leave a job in a
period.
The equation is UR = s/(s+f)
If the separation rate is 3% and the finding rate is 50%...