Unemployment Rate
Definition
The percentage of the labour force that is unemployed and actively seeking work, subject to a statistical agency's definitions. People outside the labour force are generally excluded.
The labour force includes people who have jobs and those counted as actively looking for work. When someone stops looking, they can drop out of both the unemployed group and the labour force. That is why analysts often read the unemployment rate alongside participation and employment figures.
Example
A town’s labour force has 1,000 people, including 50 who have no job and are actively looking for one. Its unemployment rate is 5%.
Canada
How is Canada’s unemployment rate calculated?
Divide the number of unemployed people by the labour force. If 60 of 1,000 labour force participants are unemployed, the rate is 6%. People outside the labour force are excluded from the denominator.
Statistics Canada Labour Force SurveyUnited States
Who counts as unemployed in the U.S.?
The official rate is the share of the civilian labour force that is unemployed. A person without work generally must be available and actively looking in the past four weeks, with an exception for temporary layoff. Someone who stops looking can leave the labour force.
U.S. Bureau of Labor Statistics employment report