Question

Which one of the following is unemployment rate?

• A. Percentage of unemployed persons to total population.
• B. Percentage of unemployed persons to total labour force.
• C. Percentage of unemployed persons to total workforce.
• D. Percentage of unemployed persons to total persons not in labour force.

Answer 1

The correct option is C Percentage of unemployed persons to total workforce.

Unemployment means the percentage of total work force which is unemployed and is willing to work, thus, looking for a paid job. Unemployment rate is one of the most closely watched statistics because a rising rate is seen as a sign of weakening economy that may call for cut in interest rate.

Unemployment rate $=\frac{Unemployedworkers}{Totalworkforce}$.