The unemployment rate is

Question

Quizplus · Accepted Answer

The unemployment rate is the proportion of the labor force that is unemployed. Hence, it is calculated by dividing the number of unemployed individuals by the labor force. Choice A is incorrect because the labor force participation rate refers to the proportion of the working-age population that is either employed or actively seeking employment, and it does not directly calculate the unemployment rate. Choice B is incorrect because the total population includes individuals who are not part of the labor force, such as children and retirees, and thus it is not an appropriate denominator for calculating the unemployment rate. Choice C is incorrect because it divides the number of employed individuals by the labor force, rather than the number of unemployed individuals, and hence it does not yield the correct unemployment rate.

The Unemployment Rate Is