How is the unemployment rate defined?

The unemployment rate is defined as the percentage of the labor force that is actively seeking employment but is unable to find work. This measure reflects the number of unemployed individuals relative to the total number of people in the labor force, which includes both the employed and those actively looking for jobs.

Understanding this definition is crucial, as it highlights the dynamic relationship between job seekers and available employment opportunities within the economy. The unemployment rate provides insights into economic health and labor market conditions; a rising unemployment rate may indicate a struggling economy, while a low rate suggests a strong job market where most individuals who want to work are able to find employment.

The other choices do not accurately capture the definition of the unemployment rate. The total number of employed individuals in a year refers to employment statistics, while the percentage of workers who resign voluntarily and the total number of jobs available pertain to aspects of labor dynamics but do not specifically define unemployment.