Natural rate of unemployment equals sum of:

Cyclical unemployment arises from economic fluctuations and is not considered a part of the natural rate of unemployment. The natural rate is specifically comprised of frictional and structural unemployment, which persist even in a healthy economy, while cyclical unemployment varies with economic conditions.

Seasonal unemployment pertains to job losses that occur at certain times of the year, such as agricultural or holiday-related work. Like cyclical unemployment, seasonal unemployment does not contribute to the natural rate, which focuses on the more stable categories of frictional and structural unemployment.

Discouraged workers are individuals who have stopped looking for work due to a belief that no jobs are available for them. While frictional unemployment is included in the natural rate, discouraged workers are not counted in the labor force, and thus their status does not contribute to the natural rate of unemployment.