The unemployment rate is defined as the
A) percentage of the population not working.
B) percentage of the working- age population not working.
C) percentage of the labor force not working.
D) number of people not working.

Question

Quizplus · Accepted Answer

The unemployment rate is the percentage of the labor force (composed of both employed and unemployed individuals who are actively seeking work) who are not currently employed. Option A is incorrect because it includes retired individuals and those who are not seeking work as part of the population. Option B is incorrect because it only considers the working-age population, whereas those not in the labor force (such as students, homemakers, and retirees) are also relevant to the calculation. Option D is incorrect because it does not specify a reference point for the number of people who are not working (such as the labor force or the population).

The Unemployment Rate Is Defined as the