Final answer:
To calculate the unemployment rate, divide the number of unemployed people by the total labor force and then multiply the result by 100 to get a percentage. The labor force consists only of those employed or actively looking for work.
Step-by-step explanation:
The unemployment rate is a critical indicator frequently used in economics to measure the health of a country's labor market. To calculate the unemployment rate, you need to follow two main steps:
Divide the number of unemployed people by the total labor force. For example, if there are 7.635 million unemployed people and 157 million people in the labor force, you would divide 7.635 million by 157 million.
Multiply the result by 100 to convert it to a percentage. Continuing with our example, the calculation would yield approximately 4.86, which, when multiplied by 100, gives us an unemployment rate of 4.86%.
It's important to note that the labor force includes only those who are either employed or actively seeking employment, not the entire working-age population.