The unemployment rate is the
A)percentage of people in the economy who do not hold jobs
B)percentage of the labor force that does not have a job
C)number of people in the economy who have given up looking for employment
D)number of people in the labor force without jobs
E)ratio of unemployed to employed high school graduates in the economy

Question

Quizplus · Accepted Answer

The unemployment rate is defined as the percentage of the labor force that does not have a job, which is calculated by dividing the number of unemployed individuals by the total number of individuals in the labor force. Choice A is incorrect because it does not take into account individuals who may not want jobs, such as retirees or stay-at-home parents. Choice C is incorrect because individuals who have given up looking for employment are not considered to be in the labor force. Choice D is essentially the same as the correct answer, but phrased differently. Choice E is not a relevant or accurate measure of the unemployment rate.

The Unemployment Rate Is the