Decide whether the following statement about the U.S. unemployment rate is true or false.

It is very likely that an unemployment rate of 0% will never be observed.

This statement is true.

An unemployment rate of 0% is impossible. Different types of unemployment will be always present in an economy. The three principal types of unemployment rate cyclical, structural, and frictional. In order to have a zero unemployment rate, these three types of unemployment must be equal to zero, which is almost impossible. Cyclical unemployment happens because of variations in the business cycle. Structural unemployment is the result of mismatches between workers' skills and employment requirements. Frictional unemployment takes place when the workers change their jobs and it is voluntary. This last type of unemployment is impossible to eliminate because there are always employment transitions of workers in economies.