•UnemploymentoDefinitions:The Labor Forceis the number of people who have jobs or who are actively looking for jobsThe Employment Rateis the number of people who have jobs divided by the Labor ForceThe Unemployment Rateis one minus the Employment Rate; alternatively, it’s the number of people who don’t have jobs and are looking for jobs divided by the Labor ForceoImportant PointsYou can’t be unemployed if you’re not looking for a job!If we didn’t have this requirement, we’d be forced to list children, senior citizens, students, the heavily disabled, etc. as unemployed. Clearly this would be ridiculous.Unemployment also misses several major issues (underemployment, overqualification, discouragement, etc). •Keep this in mind when people fixate on the unemployment rate as a huge issue!•To repeat: if you’re not looking for a job, you’re not unemployed!
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