Question

1. How is the unemployment rate measured? • How might the unemployment rate overstate the amount of joblessness? How might it understate it?

2. Why is frictional unemployment inevitable? How might the government reduce the amount of frictional unemployment?

Answer 1

Unemployment is often used as a measure of the health of the economy. The most frequent measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force. ... Working (engaged in an economic activity) i.e. 'Employed'.
The unemployment rate overstates the amount of joblessness because someone who report being unemployed not be trying hard to find a job. The unemployment rate may understate the amount of joblessness because of the workers are considered not in the labor force even though they are workers without jobs.
Frictional unemployment is inevitable because the economy is always changing. Some firms
are shrinking while others are expanding. Some regions are experiencing faster growth than
other regions. Transitions of workers between firms and between regions are accompanied
by temporary unemployment.
The government could help to reduce the amount of frictional unemployment through public
policies that provide information about job vacancies in order to match workers and jobs
more quickly, and through public training programs that help ease the transition of workers
from declining to expanding industries and help disadvantaged groups escape poverty.