The unemployment rate is the number of people classified as unemployed as a percentage of:
A)the entire population.
B)the population over the age of sixteen.
C)the labor force.
D)the number of people over the age of sixteen who are employed.

Question

The unemployment rate is the number of people classified as unemployed as a percentage of:
A)​the entire population.
B)​the population over the age of sixteen.
C)​the labor force.
D)​the number of people over the age of sixteen who are employed.

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of people classified as unemployed divided by the labor force. The labor force includes individuals who are employed or actively seeking employment, and it is a more accurate measure of the potential labor supply than the entire population or just those over the age of sixteen.

The Unemployment Rate Is the Number of People Classified as Unemployed