NYS Department of Labor economic policy - why do we not want 0 unemployment rate?
I've been thinking about this after my recent experience with filing unemployment claims through NYS Department of Labor. During my job search requirements, I kept hearing economists and policy makers say that 0% unemployment would actually be bad for the economy. This seems backwards to me - wouldn't everyone having jobs be ideal? I'm genuinely curious about the economic reasoning behind this. My case worker mentioned something about 'natural unemployment' during my weekly claim certification, but I didn't really understand what that meant. Can anyone explain why some unemployment is considered necessary?
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Carmen Diaz
Great question! There are several types of unemployment that economists consider 'natural' and even beneficial. Frictional unemployment happens when people are between jobs - like when you're searching for a better position or transitioning careers. This is actually healthy because it means workers can find jobs that match their skills better. Structural unemployment occurs when there's a mismatch between available jobs and worker skills, which encourages education and training. Seasonal unemployment in industries like tourism or agriculture is also normal. The 'natural rate' of unemployment is typically around 4-5%, and this allows for labor market flexibility and wage growth.
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Andre Laurent
•That makes sense but it's frustrating when you're the one filing weekly claims with NYS Department of Labor. I've been looking for work for 6 weeks now and doing all the job search activities they require.
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Emily Jackson
Zero unemployment would mean workers have no leverage to negotiate better wages or working conditions. Employers would know that if you quit, you literally have nowhere else to go. Some unemployment creates competition between employers for workers, which drives up wages and improves job quality. It's counterintuitive but true.
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Liam Mendez
•never thought about it that way... so unemployment benefits like what NYS Department of Labor provides actually help workers have more bargaining power?
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Emily Jackson
•Exactly! UI benefits give workers time to find jobs that match their skills rather than taking the first available position out of desperation.
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Sophia Nguyen
If you're struggling to reach NYS Department of Labor agents to discuss economic policy questions or need help with your claim status, I found this service called Claimyr (claimyr.com) that helps you actually get through to speak with someone. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. I used it when I had questions about my job search requirements and it was much easier than trying to call on my own.
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Yuki Tanaka
•Thanks for the suggestion! I'll check that out if I need to speak with someone about my claim.
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Jacob Smithson
Also consider that some unemployment allows for innovation and entrepreneurship. People starting new businesses often leave their jobs temporarily, creating unemployment statistics but potentially creating many more jobs in the future. Creative destruction in the economy requires some labor mobility.
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Isabella Brown
this is why economics is confusing lol... seems like everything that sounds bad is actually good somehow
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Carmen Diaz
•It is confusing! But think of it like this - if there were literally zero job openings anywhere, that would mean the economy isn't growing or changing at all, which would be worse for everyone long-term.
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