close search
Hit Return to see all results

What does the unemployment rate mean for the US economy?


What does the unemployment rate mean for the US economy?

Step 1

Let us discuss certain concepts related to unemployment rate:

Labor force: In an economy, labor force refers to the part of the working age population (aged 15-69) that is willing and able to work. It is the sum of employed and unemployed people.

Employed: Those people who belong to the labor force and are working belong to the employed category.

Unemployed: This includes the people who are willing and able to work but do not possess job.

Unemployment: Unemployment refers to the situation where people in the working age population (aged 16-59) are willing and able to work but cannot find work.

Unemployment rate: It is the number of people unemployed as a percentage of labor force. It is calculated using the formula below:

Step 2

According to the Bureau of Labor Statistics, unemployment rate in US hovers around 4% recently (as of June 2018). The following figure gives the statistics on unemployment rate by Bureau of Labor Statistics for the last few years.

Step 3

Unemployment rate gives a measure of the situation of joblessness in a country. It gives an approximate percentage of people who are willing and able to work but are not able to find jobs. The unemployment rate in US is around 4%. It implies approximately ...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in



Related Economics Q&A

Find answers to questions asked by student like you

Show more Q&A add

Q: During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense...

A: In the US, a higher personal tax will affect the personal disposable income and also will affect the...


Q: Please complete the statements using the labels provided. Suppose that the Federal Reserve Bank want...

A: Growth Rate:In economics growth rate refers to the increase in the country’s Gross domestic product....


Q: Part I and Part II are independent. Please answer both parts. Part I: During a year of operation, a ...

A: Accounting cost: The accounting cost is the total explicit cost of the firm. Explicit cost mean, the...


Q: Hi, can I please get help with the picture in the attachements its true and false. I’m not so good a...

A: The statement “Japan’s economy met its expected growth rate of 2%” is false. Reason: Even though the...


Q: Using the line drawing tool, graph the following two consumption functions 1000- C 3000.5Y 900- C 0....

A: The best way to do this is to calculate C0 = 300 + 0.5 Y and C1 = 0.5Y for all values of Y shown on ...


Q: 3. A canonical utility function. Consider the utility function u(c) 1-σ where c denotes consumption ...

A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3 as you have not mentione...


Q: If a trader wanted to exchange 50 Gulps for Flops, how many Flops would she get?

A: Here, the trader is exhanging one commodity for the other.


Q: 1. Which groups benefitted the most from China imposing an export quota on rare earth metals? Did it...

A: Rare earth metals are made up of 17 chemical elements that are useful in manufacturing many high-tec...


Q: Suppose that a city government introduces a $0.50 excise (commodity) tax on consumers of bottles of ...

A: An excise tax is the tax levied on the production of goods. We proceed further according to the ques...

Sorry about that. What wasn’t helpful?