Once people have been placed into the appropriate categories

Once people have been placed into the appropriate...

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Once people have been placed into the appropriate categories, the total labor force can  be calculated as the total number of workers who are either employed or unemployed.  The unemployment rate is the ratio of the number of people unemployed over the total  number of people in the labor force.  For example, let's say that a survey by the BLS reveals 20 people employed, 5 people  unemployed, and 40 people out of the labor force. Then the labor force would be the  sum of the employed plus the unemployed or 20 + 5 = 25 people. The unemployment  rate is the ratio of the unemployed to the total labor force or (5 / 25) = 20%.  Full Employment and the Natural Rate of Unemployment  The term full employment sounds as though it means everybody is working. And indeed,  full employment refers to an economic situation in which unemployment is very low. 
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Once people have been placed into the appropriate...

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