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Intermediate · 3 min

Reading labor market measures

The unemployment rate is the unemployed share of the labor force, not of the entire population. Standard definitions generally require being without work, available, and actively seeking work, with some exceptions. Students and retirees may be outside the labor force. Underemployment and participation provide additional information.

Practice

There are 90 employed and 10 unemployed people in a labor force. What is the unemployment rate?