What is the Unemployment Rate?

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What is the Unemployment Rate?

The unemployment rate is a measure that indicates the percentage of the labor force that is unemployed and actively seeking employment. It is calculated by dividing the number of unemployed individuals by the total labor force and multiplying the result by 100. The unemployment rate is an important economic indicator as it reflects the health of the labor market and the level of job opportunities available within an economy. A high unemployment rate suggests a lack of job opportunities and potential economic challenges, while a low unemployment rate indicates a strong labor market and a healthier economy.