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Question : The unemployment rate is calculated by dividing the number of unemployed individuals by:

Option 1: The total population

Option 2: The labor force

Option 3: The working-age population

Option 4: The employed population


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: The labor force


Solution : The correct answer is (b) The labor force

The unemployment rate is calculated by dividing the number of unemployed individuals by the labor force and multiplying the result by 100 to express it as a percentage.

The labor force consists of individuals who are either employed or actively seeking employment. It includes both employed individuals and those who are unemployed but actively looking for work.

The unemployment rate is a widely tracked and reported economic indicator that helps policymakers, economists, and researchers monitor and analyze unemployment trends, evaluate the effectiveness of employment policies, and make informed decisions regarding labor market interventions.

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