Unemployment

Definition

Unemployment refers to the state where individuals who are actively seeking work cannot find jobs.

Think of a game of musical chairs. When the music stops, not everyone will have a chair (job). Those left standing are considered unemployed.

Underemployment: This refers to a situation where individuals are working below their skills level or part-time when they desire full-time work.

Labor Force: The total number of people eligible to work in an economy, including both employed and unemployed individuals.

Job Market: The marketplace in which employers search for employees and employees look for jobs.

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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.