How To Measure Unemployment

• The key to understanding the reported unemployment rate is to understand a few definitions.

• At first it may seem obvious who is unemployed and who isn’t. But, in practice it’s harder to tell. The problem isn’t in telling who is employed. After all, if a person is working at a job or if they are self-employed, they are “employed”.

• The problem is determining who is “unemployed”.

• This tutorial will step you through how the unemployment rate is calculated.