Unemployment

Unemployed is the term used to describe a person who is both willing and able to work, but is not in employment. The unemployment rate is the percentage of the workforce which is both willing and able to work but cannot find work.

Unemployment, along with inflation and GDP is one of the most commonly used indicators of the strength of an economy.

There are many difference ways to calculate the unemployment rate but the most common one is using the U.S. Bureau of Labor Statistics data on the size of the workforce and number of unemployed.

If someone is not of working age (i.e. under 18, over 65) or not willing or able to work then they are not counted as part of the workforce and will not affect the unemployment figures.

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Retained Earnings
• Fraud Triangle
• Cost of Goods Manufactured (COGM)
• Marginal Cost Formula
• Nash Equilibrium