# How To Calculate The Unemployment Rate

Unemployment is a socio-economic phenomenon, a sign of which is the impossibility of a part of the economically active population to find a job. The unemployed is considered a part of the economically active population of the country, people who do not have a job, but want to find it and are actively looking for it.

## Instructions

### Step 1

The number of unemployed in the country and, accordingly, the unemployment rate is determined in two different ways. The first one is based on the registration of unemployed persons with official bodies. Only those who applied to the relevant state, municipal or public service (abroad it is a labor exchange, in our country - the Federal Employment Service) receive the status of unemployed. These people are registered by the state accounting authorities and thus are taken into account by official statistics.

### Step 2

The second method is based on the methodology developed by the World Labor Organization (ILO), according to which it is not so important how the unemployed person is looking for a job (whether they contact the employment service or not), but it is only important that they are really looking for it (not for appearance). At least if he has been doing it for the last four weeks.

The second method uses sample sociological surveys of households. At the same time, a statistical error is inevitable, but, nevertheless, this method provides much more reliable and accurate information about the real number of people employed in the economy and the real number of unemployed, especially in countries in which many unemployed are not very eager to register and register.

### Step 3

Thus, in order to calculate the unemployment rate (u), it is necessary to calculate the percentage of the total number of unemployed to the number of the entire economically active population, in other words, the labor force.

The calculation is quite simple, for this use the following formulas:

N = LF + NLF;

LF = E + U;

u = U / LF = U / E + U, where u is the unemployment rate, U is the unemployed, E is the employed population, NLF is the economically inactive population, LF is the economically active population (labor force), and N is the entire population of the country.