DEMOGRAPHIC FACTORS AFFECTING THE NATURAL RATE OF UNEMPLOYMENT SINCE 1950

The unemployment rate is a key economic indicator but comparing unemployment rates of today to unemployment rates of the past does not give a completely accurate picture of economic performance. One reason is that demographic changes in the labor force can affect the overall unemployent rate. This study examines changes in the demographic composition of the labor force and estimates how demographic factors have affected the unemployment rate from 1950 to 1980. This estimation allows the actual unemployment rate to be corrected for demographic influences.