Updated on March 17, 2023
Unemployment Rate of a country is defined as the percentage of the population without a job or gainful employment. It includes people who do not have work now but were previously employed and those who have never worked but are looking for employment. The labour force in an economy without jobs can pose serious challenges to its industrial growth, consumer demand, consumption and economic growth. It directly impacts the GDP, purchasing power of people, family income and if not handled properly, it can become a national issue.
Unemployment Rate = Unemplyed/Labour Force x 100
What are the features of Unemployment Rate?
Features of Unemployment Rate are:
1. When an economy is in bad shape and there is a general lack of growth, the Unemployment Rate goes up.
2. On the other hand, when the economy is growing at a good rate and when the overall job market is healthy, the Unemployment Rate tends to go down.
3. In a strong economy, more people are expected to be gainfully employed.
4. Unemployment Rate is an indicator for understanding general labour market conditions.
5. Unemployment Rate is a measure of population able and willing, but not having the opportunity to participate in paid work.