How is the unemployment rate computed?
A) by counting the number of employment insurance applications filed
B) by dividing the number of unemployed by the number of persons in the labour force
C) by determining the number of unemployed in the population aged 18 and older
D) by counting the number of working-age persons who don't have a job

Question

Quizplus · Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed people by the number of people in the labour force, which includes all employed and unemployed individuals who are actively seeking work. Option A is incorrect because not all unemployed individuals apply for employment insurance. Option C is incorrect because the unemployment rate does not restrict itself to a specific age group. Option D is incorrect because not all working-age individuals are part of the labour force.

How Is the Unemployment Rate Computed