The total number of unemployed (for an economy, region, or subgroup) as a percentage of the corresponding total labour force (the sum of the total persons employed and unemployed in the economy, region, or subgroup). The standard definition of the unemployment rate is provided by the Intemational Labour Organization (ILO). The ILO defines the labour force as the economically active portion of the population, not the total population, and the unemployed as those individuals without work, seeking work in a recent past period, and currently available for work. This definition of unemployment excludes people who are not currently in the labour market, who want to work but do not actively seek work. There can be a variety of reasons for not seeking work, including restricted labour mobility and the belief that job opportunities are limited.
|Reference: Oxford Press Dictonary of Economics, 5th edt.|