ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The unemployment rate is one of the most reliable lagging indicators. If the unemployment rate rose last month and the month before, it indicates that the overall economy has been doing poorly and may well continue to do poorly.

Detailed explanation-2: -Unemployment rate – the percentage of people in the labour force that are unemployed. Participation rate – the percentage of people in the working-age population that are in the labour force.

Detailed explanation-3: -The unemployment rate represents the number of unemployed people as a percentage of the labor force (the labor force is the sum of the employed and unemployed). The unemployment rate is calculated as: (Unemployed ÷ Labor Force) x 100.

Detailed explanation-4: -The unemployment rate as it is measured officially is often criticized for understating the level of joblessness because it excludes anyone working at all or people who aren’t looking for work. In particular, the official unemployment rate leaves out discouraged workers and the underemployed.