The unemployment rate equals
A) labor force/working age population) × 100.
B) number of people employed/working age population) × 100.
C) number of people unemployed/labor force) × 100.
D) number of people employed/number of people age 16 and over) × 100.

Question

Quizplus · Accepted Answer

The unemployment rate is defined as the number of people who are unemployed (i.e. actively seeking work but unable to find a job) divided by the labor force (i.e. the sum of employed and unemployed individuals). This fraction is then multiplied by 100 to express the unemployment rate as a percentage. Therefore, the formula for the unemployment rate is (number of people unemployed / labor force) × 100.

The Unemployment Rate Equals