Question

What is the most common measure of unemployment?

Answer 1

The most common measure of unemployment is the unemployment rate.

1. It is calculated as the ratio of the total number of unemployed persons to the total number of people in the labour force.
2. The formula is:
   Rate of unemployment = `"Total number of unemployed persons"/"The number of people in the labour force" xx 100`
3. The labour force includes all persons who are either employed or actively seeking employment.
4. This measure indicates the percentage of the labour force that is without work but willing and able to work at the prevailing wage rate.