The unemployment rate measures the share of a country’s labor force without jobs but actively seeking work.
The standard calculation divides the number of unemployed people by the labor force, then multiplies by 100. The labor force includes employed people and unemployed people who are available for work and seeking it; it does not include everyone of working age.
People who have stopped looking because they believe no jobs are available are generally classified as outside the labor force, not unemployed, under standard statistical definitions. Students, retirees, and people caring for family may also be outside the labor force if they are not working or seeking work.
The unemployment rate is different from the labor-force participation rate, which measures the share of the working-age population in the labor force. Analysts often examine both figures, along with underemployment and broader measures of unused labor, to understand labor-market conditions more fully.