Economics (MindTap Course List)
Solutions
Economics (MindTap Course List)
If the unemployment rate is 4 percent, it does not follow that the employment rate is 96 percent. Explain why.
The rate of unemployment and the rate of employment.
The rate of unemployment is defined as the percentage of the civilian labor force which is unemployed. The unemployment rate is calculated as the ratio of the number of unemployed people to the total civilian labor force. Mathematically, the rate of unemployment is calculated as follows:
The rate of employment is defined as the percentage of the civilian non-institutional population which is employed. The employment rate is calculated as the ratio of the number of employed people to the civilian non-institutional population
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