Which of the following is the correct way to calculate the unemployment rate?
A) [(unemployed)/(population)] × 100
B) [(unemployed)/(labor force)] × 100
C) [(labor force)/(population)] × 100
D) [(labor force)/(unemployed)] × 100

Question

Quizplus · Accepted Answer

The unemployment rate is defined as the percentage of the labor force that is unemployed. Therefore, the correct way to calculate the unemployment rate is to divide the number of unemployed individuals by the labor force (which is made up of employed and unemployed individuals actively seeking employment) and then multiply by 100 to convert to a percentage.

Which of the Following Is the Correct Way to Calculate