Unemployment Rate
The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. The unemployment rate is a lagging indicator, meaning that it generally rises or falls in the same direction of the overall economy, but lags behind the overall economy. It is an important indicator of the health of an economy, as high unemployment indicates a lack of jobs and a weak economy.
History of the Term
The concept of unemployment rate has been around since the early 19th century. The first official unemployment rate was calculated in the United States in 1869 by the Bureau of Labor Statistics. The rate was calculated by dividing the number of unemployed individuals by the total number of individuals in the labor force. Since then, the unemployment rate has been used as an important indicator of the health of the economy.
Comparisons
| Year | Unemployment Rate |
|---|---|
| 2020 | 13.3% |
| 2019 | 3.5% |
| 2018 | 3.9% |
| 2017 | 4.4% |
Summary
The unemployment rate is an important indicator of the health of an economy, as high unemployment indicates a lack of jobs and a weak economy. The concept of unemployment rate has been around since the early 19th century and the first official unemployment rate was calculated in the United States in 1869. For more information about the unemployment rate, you can visit the Bureau of Labor Statistics website or the U.S. Department of Labor website.
See Also
- Labor Force Participation Rate
- Employment-Population Ratio
- Underemployment Rate
- Labor Force
- Gross Domestic Product
- Consumer Price Index
- Inflation Rate
- Productivity
- Gross Domestic Product per Capita
- Unemployment Benefits
