This paper discusses various concepts of unemployment rate benchmarks that are frequently used by policymakers for assessing the current state of the economy as it relates to the pursuit of both price stability and maximum employment.
This memo evaluates the extent of economic and labor market slack in mid-2014 by comparing the FRB staff's unemployment rate gap with a variety of alternative measures and indicators.
Although the unemployment rate is the arguably the best single summary indicator of the labor market, it is important to consider additional indicators for a comprehensive assessment of current conditions and the future trajectory.