Source: U.S. Congressional Budget Office
Release: Budget and Economic Outlook
This series last appeared in the February, 2021 report: An Overview of the Economic Outlook: 2021 to 2031. The suggested substitute for this series is "Noncyclical Rate of Unemployment" (NROU), formerly called "Natural Rate of Unemployment (Long-Term)."
The natural rate of unemployment (NAIRU) is the rate of unemployment arising from all sources except fluctuations in aggregate demand. Estimates of potential GDP are based on the long-term natural rate. (CBO did not make explicit adjustments to the short-term natural rate for structural factors before the recent downturn.) The short-term natural rate incorporates structural factors that are temporarily boosting the natural rate beginning in 2008. The short-term natural rate is used to gauge the amount of current and projected slack in labor markets, which is a key input into CBO's projections of inflation.
U.S. Congressional Budget Office, Natural Rate of Unemployment (Short-Term) (DISCONTINUED) [NROUST], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/NROUST, September 30, 2023.