Definition
The unemployment rate measures unemployed people as a share of the labor force.
Political Dictionary
Unemployment
Unemployment refers to people without jobs who are available for and actively seeking work.
Why It Matters
It is a key indicator of economic health and household hardship.
How It Works
Survey agencies classify people based on recent job-search activity and availability.
History
Governments began systematic labor-market measurement during the twentieth century.
Example
A laid-off worker applying for jobs is counted as unemployed.
Common Misconceptions
- Everyone without a job is unemployed.
- The unemployment rate includes all adults.
- A falling rate always means more people found jobs.
Related Terms
- Labor Force
- Recession
- Economic Growth
- Labor Force Participation
- Jobs
Related Topics
See Also