The unemployment rate is interpreted as the percentage of the
A) adult population who are unemployed.
B) labor force that are not employed.
C) able-bodied population who are not working.
D) workforce that have been laid off.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the percentage of the labor force that is not employed. The labor force is defined as those who are either employed or actively seeking work. Therefore, option A (adult population who are unemployed) and option C (able-bodied population who are not working) are both incorrect as they do not take into account the labor force definition. Option D (workforce that have been laid off) is also incorrect as it only considers a small portion of the unemployed population and does not include those who are not working for other reasons such as being unable to find a job or choosing not to work.

The Unemployment Rate Is Interpreted as the Percentage of the