The percentage of the labour force that is unemployed is the:
A) labour force participation rate.
B) employment ratio.
C) unemployment rate.
D) natural employment rate.

Question

Quizplus · Accepted Answer

The unemployment rate measures the percentage of the labour force (which includes everyone who is either employed or unemployed and actively seeking work) that is currently unemployed. The labour force participation rate measures the percentage of the working-age population that is in the labour force, regardless of whether they are employed or not. The employment ratio measures the percentage of the working-age population that is employed. The natural employment rate is a theoretical concept that represents the level of employment that would exist in the absence of any cyclical fluctuations (i.e. if the economy were always at full employment).

The Percentage of the Labour Force That Is Unemployed Is