Which expression MOST accurately describes how to calculate the unemployment rate?
A) (Unemployed / Population) * 100
B) (Unemployed / Employed) * 100
C) (Unemployed / Labor force) * 100
D) [(Unemployed - Employed) / Labor force] * 100

Question

Quizplus · Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the labor force, which includes both employed and unemployed individuals actively seeking work. This is expressed as a percentage, so the result is then multiplied by 100. Therefore, the correct formula is (Unemployed / Labor force) * 100. Option A divides the number of unemployed individuals by the total population, which is not an accurate representation of the labor force. Option B divides unemployed individuals by employed individuals, which does not account for those who are not employed or seeking work. Option D subtracts the number of employed individuals from the number of unemployed individuals, which does not provide an accurate representation of the unemployment rate.

Which Expression MOST Accurately Describes How to Calculate the Unemployment