The unemployment rate is
A)the percentage of the labour force that is employed.
B)the percentage of the working-age population that is unemployed.
C)the percentage of the labour force that is unemployed.
D)the percentage of the working-age population that is employed.
E)the percentage of the population that is unemployed.

Question

Quizplus · Accepted Answer

The unemployment rate is defined as the percentage of the labour force that is unemployed. It measures the proportion of the labour force that is willing and able to work but is currently without a job. Option A is incorrect because it measures the percentage of the labour force that is employed, not the unemployed. Option B is incorrect as it measures the percentage of the working-age population that is unemployed, which includes individuals who are not a part of the labour force, such as retirees or full-time students, while excluding those who are employed. Option D is incorrect as it measures the percentage of the working-age population that is employed, not the unemployed. Option E is incorrect as it measures the percentage of the total population that is unemployed without distinguishing between those who are part of the labour force or not.

The Unemployment Rate Is