Economics
Basic

Unemployment Rate

The share of the labor force that is jobless and actively seeking work.

Formula

u=UnemployedLabor Force×100%u = \dfrac{Unemployed}{Labor\ Force}\times 100\%

Variables

uUnemployment rate
UnemployedJobless job-seekers
Labor ForceEmployed + unemployed

Example

6M / 160M = 3.75%

Did You Know?

People who stop looking for work leave the labor force, which can lower the rate even as jobs stay scarce.

unemploymentlabormacro