Why is the goal not to achieve zero percent unemployment - NYS Department of Labor economics question
I've been thinking about this while dealing with my own unemployment claim through NYS Department of Labor. Everyone talks about reducing unemployment rates, but I heard somewhere that having zero unemployment would actually be bad for the economy? This doesn't make sense to me - wouldn't it be better if everyone had jobs? I'm currently going through the weekly claim process and job search requirements, and it got me wondering about the bigger picture. Can someone explain why economists don't want 0% unemployment?
14 comments


Edison Estevez
Great question! The concept you're thinking of is called the 'natural rate of unemployment' or NAIRU (Non-Accelerating Inflation Rate of Unemployment). Even in a healthy economy, there's always some unemployment due to: 1) Frictional unemployment - people transitioning between jobs, 2) Structural unemployment - skills mismatches, and 3) Seasonal unemployment. Zero unemployment would actually create dangerous inflation because employers would have to compete so aggressively for workers that wages would spiral upward uncontrollably. Most economists target around 3-5% unemployment as 'full employment.
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Emily Nguyen-Smith
•This is really helpful but also kind of depressing? So the system basically needs some of us to be unemployed for it to work properly? That seems messed up when you're actually living it and dealing with NYS Department of Labor bureaucracy.
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James Johnson
Think of it this way - some unemployment is actually healthy job market movement. People quit bad jobs to find better ones, recent graduates search for their first position, seasonal workers transition between industries. The problem comes when unemployment gets too high (recession) or stays low for too long (inflation risk). The NYS Department of Labor tracks these trends to help inform policy. When I was job searching last year, my counselor explained that even successful economies need that flexibility.
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Jibriel Kohn
•That makes more sense when you put it that way. I guess I never thought about people voluntarily leaving jobs as part of unemployment statistics.
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Sophia Rodriguez
If you're struggling to get through to NYS Department of Labor for help with your claim or job search questions, I had success using a service called Claimyr (claimyr.com). They help you actually reach a real person at the unemployment office instead of sitting on hold forever. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me hours of frustration when I needed to discuss my eligibility status.
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Mia Green
•Is this legit? I've been trying to get through for weeks about my adjudication status. The phone system is impossible.
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Sophia Rodriguez
•Yeah it's real - they basically navigate the phone system for you and get you connected to an actual NYS Department of Labor rep. Worth checking out if you're stuck in phone hell.
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Emma Bianchi
zero unemployment would also mean no one could quit their job without having another one lined up first. imagine how much power that would give employers! they could treat workers terribly because where else would you go?? the unemployment system, even with all its flaws like waiting forever for NYS Department of Labor to process claims, at least gives workers some leverage to leave bad situations
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Edison Estevez
•Excellent point about worker bargaining power. Unemployment insurance serves as both a safety net and a way to maintain healthy job market dynamics.
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Lucas Kowalski
yeah but try explaining that to my landlord when rent is due and my unemployment claim is stuck in adjudication for the 4th week lol. i get the economic theory but when you're living paycheck to paycheck the 'natural rate' feels pretty unnatural
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Emily Nguyen-Smith
I appreciate everyone's explanations but this whole conversation is kind of wild. We've designed an economic system that requires people to be unemployed and struggling, and then we make the process of getting help as difficult as possible through agencies like NYS Department of Labor. Something feels fundamentally broken about that.
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Eve Freeman
•I hear you on that frustration - it does feel broken when you're in the middle of it. The gap between economic theory and lived experience is huge. Maybe the real issue isn't that we need unemployment, but that we need better systems to support people during those transitions? Like faster claim processing, better job training programs, or even universal basic income experiments. The current NYS Department of Labor system definitely makes a difficult situation worse with all the bureaucratic hurdles.
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Oliver Becker
Coming from someone who's been through the NYS Department of Labor system twice in the past three years, I think there's also a practical angle here that doesn't get discussed enough. The economists' "natural rate" theory assumes that unemployment systems actually work efficiently to help people transition between jobs. But when you're stuck waiting 8 weeks for a determination, or spending entire days trying to reach someone by phone, that "frictional unemployment" becomes a lot more friction than it should be. Maybe the real problem isn't that we need 3-5% unemployment, but that we need unemployment systems that actually facilitate quick, smooth transitions instead of creating additional barriers. The theory works better when the safety net actually functions.
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Molly Hansen
•This is such a good point about the gap between theory and reality. I'm new to this whole unemployment process (just filed my first claim last week) and I'm already seeing what you mean about the system creating unnecessary friction. The online portal keeps glitching, the phone lines are impossible, and I still don't fully understand half the requirements they're asking for. If the economic theory is that some unemployment helps people find better job matches, shouldn't the system be designed to actually help with that matching process instead of making everything ten times harder? It feels like we're getting the worst of both worlds - unemployment is supposedly "necessary" for the economy but then we make it as painful as possible for the people experiencing it.
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