Understanding Unemployment Rates
Definition of Unemployment
Unemployment refers to the state of individuals who are of working age, without work, available for work, and have actively sought employment.
Unemployment Rate Calculation
The unemployment rate measures the percentage of the labor force that is currently unemployed but actively searching for a job. It is calculated by dividing the number of unemployed individuals by the total labor force and multiplying by 100.
Types of Unemployment Rates
Various types of unemployment rates exist, including:
- Civilian unemployment rate: Measures the percentage of the civilian labor force without a job.
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