Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. The frictional unemployment rate is percent and the actual unemployment rate (in this economy) is percent.

The frictional unemployment rate is 3.1 percent and the actual unemployment rate (in this economy) is 7.3 percent.

Explanation:

natural unemployment rate = frictional unemployment + structural unemployment

frictional unemployment = natural unemployment - structural unemployment = 5.3% - 2.2% = 3.1%

actual unemployment rate = natural unemployment + cyclical unemployment rate = 5.3% + 2% = 7.3%

Frictional unemployment is voluntary and happens when someone quits his/her job in order to look for a better job. Structural unemployment happens when the skills of the workers do not match the requirements of the hiring companies. Cyclical unemployment takes place when the economy is in recession.