Washington ESD says 0% unemployment rate is bad - can someone explain why?

It's counterintuitive but economists call it 'natural unemployment' - there's always going to be some people between jobs, recent graduates looking for their first position, people relocating, etc. If unemployment hits absolute zero, it usually means the economy is overheated and wages/inflation will spike.

Think about it this way - if unemployment is 0%, that means every single person who wants a job has one. Sounds great right? But it also means employers have zero leverage and workers can demand whatever they want. Wages would skyrocket overnight and so would prices for everything.

I've been dealing with Washington ESD for months trying to get through their phone system, and honestly the unemployment rate is the least of my concerns right now. I just want to talk to an actual human about my adjudication status! Has anyone found a reliable way to reach them? I've tried calling first thing in the morning but still get disconnected.

from an economics standpoint, around 4-5% unemployment is considered 'full employment' because it accounts for people voluntarily changing jobs, seasonal workers, new graduates entering the workforce, etc. Zero unemployment would mean no labor mobility which would actually hurt economic growth

this is all theoretical BS when you're actually unemployed and struggling to pay bills. I don't care about the 'natural rate' when my Washington ESD claim has been pending for weeks

Another way to think about it - if there was literally zero unemployment, how would new businesses find workers? They'd have to poach from existing companies, driving up wages across the board. Some unemployment creates a pool of available talent for growing industries.

OK so this helps explain why Washington ESD and unemployment insurance exists as a permanent institution rather than something they're trying to eliminate entirely. It's managing a necessary economic function.

i mean this is interesting and all but has anyone actually figured out how to get washington esd on the phone reliably? my claim status hasn't updated in 3 weeks

Update: tried that Claimyr thing someone mentioned and actually got through to Washington ESD within 2 hours! Agent was able to explain my adjudication delay and gave me a timeline. Pretty amazing compared to my weeks of failed calling attempts.

Getting back to the original question - historically, periods of extremely low unemployment (like under 3%) have often preceded economic overheating and recessions. The late 1960s and late 1990s are good examples of this pattern.

Think of unemployment like inventory in business - you don't want excessive inventory (high unemployment) but you also don't want zero inventory (zero unemployment) because then you can't respond to changing demand.

all this macro economics theory is fine but when you're actually dealing with washington esd bureaucracy and waiting for your weekly claim to process, it feels pretty academic

For anyone still struggling with Washington ESD contact issues, I keep recommending Claimyr because it genuinely solved my problem. The automatic calling feature is clutch when you're dealing with high call volume periods.

Thanks everyone for explaining this. I understand now why economists view some unemployment as healthy - it provides labor market flexibility and prevents wage inflation from spiraling out of control. Still hoping to get off Washington ESD benefits soon though!

just want to add that while 0% unemployment sounds impossible, some small towns/regions have gotten close during resource booms and it created huge problems with housing costs and inflation

Final update - got my Washington ESD payments released after that call through Claimyr. Sometimes you really do need to talk to an actual person to resolve these adjudication issues. The automated system just can't handle complex cases.

This thread got me thinking about how Washington ESD fits into the bigger economic picture. They're not just processing claims, they're managing a key economic stabilizer.

Bottom line for anyone reading this: healthy economies maintain unemployment rates between 3-5%. Zero unemployment would actually indicate serious economic imbalances that would hurt everyone in the long run through inflation and reduced economic flexibility.

as someone who's worked in HR, I can confirm that periods of very low unemployment make hiring incredibly difficult and expensive. companies end up in bidding wars for talent

Thanks for this discussion. I'm filing my weekly Washington ESD claim tomorrow and it's helpful to understand that being temporarily unemployed is part of normal economic function, not a personal failure.