Unemployment in an economy is determined by calculating the unemployment rate. This rate shows how many unemployed individuals have increased with the increase in the population. This percentage can be compared with the previous unemployment rate and a change is calculated. The formula for calculating unemployment is as follows:
Unemployment rate = Unemployed workers/Total labor force
International labor organization has approved four methods for calculating unemployment. The first method is through Labour Force Sample Surveys. The other methods include Official Estimates, Social Insurance Statistics and Employment Office Statistics.
Unemployment rate = Unemployed workers/Total labor force
International labor organization has approved four methods for calculating unemployment. The first method is through Labour Force Sample Surveys. The other methods include Official Estimates, Social Insurance Statistics and Employment Office Statistics.