Business Finance
Unemployment rate

Question Description

I’m studying for my Economics class and don’t understand how to answer this. Can you help me study?

How is the unemployment rate calculated? Where does the BLS get the data they use to calculate the unemployment rate?

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Final Answer

First, calculate U: The sum of frictional, structural, and cyclical unemployment. 
U = 20 + 35 + 60 =115 
Discouraged workers are not counted as part of the labor force. 

Second, calculate CLF: The sum of total employment and total unemployment. 
CLF = 115 + 10 + 410 = 535 
Underemployed workers get counted as part of the labor force. 

Thrid, calculate u: U/CLF. 
u = 115/535 = 0.215 = 21.5%

sobia (165)
New York University

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