Unemployment rates are critical to any economy as it allows governments to have an
idea, concerning how much of the population is unemployed. Unemployment rates can be seen
as one of the factors that outline a healthy economy. Playing such a vital role, we need to be able
to understand how unemployment rates are calculated. The official unemployment rate is
calculated by dividing the number of unemployed people (out of work and actively looking for
work) by the total number of labor force participants (people age fifteen and older who are
working for pay or looking for work).