Unemployment Rate

Unemployment rate is one of the most important indicators of a country's economic condition. It represents the ratio of the number of unemployed to the total labor force at a given date.

Unemployment is a lagging indicator, i.e. it adjusts to changes in economic conditions.

The main difficulty lies in the collection of statistics on the unemployed and the employed. It is very difficult to correctly determine the real number of employed and unemployed.

For example, the labor force does not include people who have given up looking for work. And the number of unemployed does not include people who are working part-time but would like to switch to full-time work but cannot do so for some reason.

The unemployment rate is extremely important in determining the current state of the economy and in forecasting its future dynamics. Too high an unemployment rate leads to low GDP growth rates and increased social tensions.