The unemployment rate measures:
A)the number of unemployed workers as a percentage of the entire population.
B)the number of unemployed workers as a percentage of the population over the age of sixteen.
C)the number of unemployed workers as a percentage of the labor force.
D)the number of people unemployed divided by the number of people employed.
E)the number of people unemployed divided by the number of people over the age of thirty five.

Question

The unemployment rate measures:​
A)the number of unemployed workers as a percentage of the entire population.
B)the number of unemployed workers as a percentage of the population over the age of sixteen.
C)the number of unemployed workers as a percentage of the labor force.
D)the number of people unemployed divided by the number of people employed.
E)the number of people unemployed divided by the number of people over the age of thirty five.

Quizplus · Accepted Answer

The unemployment rate measures the number of unemployed workers as a percentage of the labor force, which includes those who are actively seeking employment. It does not take into account the entire population or specific age ranges. Option A is incorrect because it includes those who are not part of the labor force, such as retirees and children. Option B is incorrect because it only includes those over the age of sixteen, but not everyone in the labor force is over sixteen. Option D is incorrect because it divides the number of unemployed by the number of employed, which would give a completely different percentage. Option E is incorrect because it only includes those over the age of thirty-five, but everyone in the labor force should be counted.

The Unemployment Rate Measures:​

The Unemployment Rate Measures: