If the unemployment rate is 8 percent, this means:
A)8 percent of the population is unemployed.
B)8 percent of the population over age 16 is unemployed.
C)8 percent of the labor force is unemployed.
D)the number of unemployed persons equals 8 percent of the employed persons.

Question

If the unemployment rate is 8 percent, this means:
A)​8 percent of the population is unemployed.
B)​8 percent of the population over age 16 is unemployed.
C)​8 percent of the labor force is unemployed.
D)​the number of unemployed persons equals 8 percent of the employed persons.

Quizplus · Accepted Answer

The unemployment rate is typically calculated as the percentage of the labor force that is unemployed. Therefore, option C - 8 percent of the labor force is unemployed - is the correct choice. Option A is incorrect because it doesn't take into account the size of the labor force. Option B is close but not entirely accurate, as it only applies to the population over age 16 who are in the labor force. Option D is also incorrect, as it suggests that the number of unemployed people is some proportion of the employed population, which isn't necessarily the case.

If the Unemployment Rate Is 8 Percent, This Means