Unemployment

Definition

Unemployment refers to the state of being without a job, actively seeking employment, and available to work. It is an important economic indicator that measures the percentage of the labor force that is jobless.

Related terms

Labor Force Participation Rate: The labor force participation rate measures the percentage of working-age individuals who are either employed or actively looking for work.

Frictional Unemployment: Frictional unemployment refers to temporary unemployment that occurs when individuals are transitioning between jobs or entering the workforce for the first time.

Structural Unemployment: Structural unemployment happens when there is a mismatch between the skills and qualifications workers possess and those demanded by employers due to changes in technology or industry shifts.