The unemployment rate if there are 170 million people employed, 25 million people unemployed, and 35 million not in the labor force 12.8%.
What is unemployment rate?
- The percentage of the labor force without a job is known as the unemployment rate. It is a lagging indicator, which means that rather than foretelling changes in economic conditions, it often rises or decreases in response to them.
- The unemployment rate is likely to increase when the economy is struggling and there are few open positions. It is reasonable to anticipate a decline in it when the economy is expanding healthily and there are plenty of available jobs.
- The percentage of the labor force that is not now employed but has the potential to be is known as the unemployment rate.
The unemployment rate is the number of unemployed divided by the labor force.
Given, unemployed people = 25 million.
labor force = 135 million.
Therefore, unemployment rate = 12.8%.
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