The unemployment rate at which there is neither excess demand nor excess supply in the aggregate labor market:

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The unemployment rate at which there is neither excess demand nor excess supply in the aggregate labor market is called the natural rate of unemployment. This rate is influenced by factors such as demographics, technology, and government policies. Its value ranges from 4% to 6% in most industrialized countries. Pursuing the natural rate of unemployment as a policy goal does not necessarily lead to higher inflation. In fact, when the economy operates at the natural rate of unemployment, there is less pressure on wages and prices to rise, which can help to keep inflation in check. The natural rate of unemployment is not necessarily linked to the level of inflation that is lower than expected.

The Unemployment Rate at Which There Is Neither Excess Demand