Supposedly, this is the rate of unemployment which still does not influence inflation. Some unemployment, the theory, goes is frictional. Labour Mobility People move from one job to another, either because they are fired or because they seek to improve their lot. In the intervening period between leaving an old workplace and finding another, they are unemployed. Every year there are new entrants to the labour market.
Generations mature and are ripe to be part of the labour force.
Until they find their first job these new participants are unemployed. These workers join the ranks of the unemployed at certain times and desert them seasonally. They go unreported or report themselves as unemployed, thus distorting the true picture of unemployment. The frictional type of unemployment is a sign of economic health. It indicates a dynamic economy in fast development.