Unemployment occurs when someone who wants to work is unable to find a job and has to live on subsistence. According to the US Bureau of Labor Statistics, it is people who don’t have a job, currently available for work and have been actively looking for work in the past four weeks. It describes the economic health of the country, where a high rate is considered a sign of distress and a low rate is an indicator of an overheated economy.
When there are unemployed workers, it means the contribution to economic production is less. When there’s no subsequent decline in the need for basic consumption, this becomes a cause of serious concern. Usually unemployment is measured as unemployment rate, where the number of unemployed people is divided by the total number in the labor force. This labor force does not include people who would like to work but is not looking for a job, college students, retired people etc. However, they include temporarily laid-off employees, or people waiting to be called back to work.
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