Unemployment rate

Definition

The unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment and willing to work. It is a key indicator used to assess the health of an economy within macroeconomics.

Related terms

Labor Force:

The labor force comprises all working-age people who are willing and able to work, including both employed and unemployed individuals.

Economic Growth:

Economic growth refers to an increase in the production of goods and services in an economy over time, often leading to better job opportunities and lower unemployment rates.

Recession: A recession is a period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters, often leading to higher unemployment rates