AP MacroeconomicsUnemployment & Inflation
Unemployment Rate
Unemployment rate is the percentage of unemployed workers.
The unemployment rate is the percentage of the labor force that is currently unemployed and actively seeking employment. It is calculated by dividing the number of unemployed workers by the total labor force and multiplying by 100. The unemployment rate is an important economic indicator, as it helps to measure the health of the labor market and the overall economy. A high unemployment rate can have negative effects on the economy, while a low unemployment rate can be beneficial for economic growth and stability.
Formula / Example
(Number of unemployed workers / Labor force) * 100