What Is Unemployment Rate? Meaning & Example
Definition
The unemployment rate is the percentage of the labor force that is actively looking for work but has no job. It is a key gauge of economic health.
Related terms
A recession is a significant, widespread decline in economic activity lasting more than a few months. It often brings rising unemployment and falling business profits.
GDP (Gross Domestic Product)GDP is the total value of goods and services produced in an economy over a period. It is the broadest measure of economic size and growth.
Business CycleThe business cycle is the recurring pattern of expansion, peak, contraction and recovery in an economy. Cycles vary greatly in length and intensity.
What is Unemployment Rate?
The unemployment rate is the percentage of the labor force that is actively looking for work but has no job. It is a key gauge of economic health.
Can you give an example of Unemployment Rate?
If 100 people are in the labor force and 5 are seeking work without a job, the unemployment rate is 5%.