How is the unemployment rate measured?
The unemployment rate is calculated as the percentage of the labor force who could not find work. The labor force, then, is composed of employed and unemployed persons. To be considered unemployed, people must have actively looked for work, but did not work during the survey period. If people did not work or did not actively look for work, they are not in the labor force and not included its calculation for the unemployment rate. The Bureau of Labor Statistics answers this question very well and in more detail at its website: http://www.bls.gov/cps/cps_htgm.htm And if you want the really detailed version with all the nitty-gritty, go to the “BLS Handbook of Methods.” ( http://www.bls.gov/opub/hom/homtoc.htm ). Chapter 1 ( http://www.bls.gov/opub/hom/homch1_a.htm ) gives information on measuring the national unemployment rate and Chapter 4 ( http://www.bls.gov/opub/hom/homch4_a.htm ) presents information on state and local unemployment rates.
