The official unemployment rate is:
A) the number of unemployed people divided by the number of employed people.
B) the number of unemployed people divided by the total size of the population.
C) the number of unemployed people divided by the size of the non-institutionalized population.
D) the number of unemployed people divided by the size of the labor force.
E) the number of unemployed people divided by the number of people aged 16 or under.

Question

Quizplus · Accepted Answer

The official unemployment rate is calculated by taking the number of unemployed people and dividing it by the size of the labor force. The labor force includes all people who are employed or actively seeking employment. This measure provides a more accurate representation of the unemployment situation than the options A, B, and E, which do not take into account the size of the labor force. Option C is also incorrect as it is not clear what is meant by the "non-institutionalized population", which could lead to inaccuracies in the calculation of the unemployment rate.

The Official Unemployment Rate Is