Unemployment rate is a key economic indicator and can help provide a sense of whether the economy is healthy or not. It measures the number of people who are without a job and who are actively seeking employment. It is calculated as a percentage of the labor force. The unemployment rate is determined at the national and regional levels through labour-force surveys conducted by government agencies. The data is also collected by international organizations such as the Organisation for Economic Co-operation and Development and the International Monetary Fund.
Typically, the unemployment rate is calculated only for those individuals who are available to work and who have searched for a job within the last four weeks. However, the Bureau of Labor Statistics (BLS), an agency under the Department of Labor, produces a more comprehensive measure of unemployment called U-6, which includes all those who are technically unemployed as well as those who are working part-time for economic reasons but who would prefer full-time jobs and those who have given up looking for work.
A high unemployment rate can be a sign that the economy is struggling and may require policy action. It can also cause suffering for individuals and their families, as it reduces the income they receive and may prevent them from securing other sources of income. Unemployment can also impact on a person’s quality of life as it can affect their health, as well as their social connections and mental wellbeing.