The unemployment rate measures the percentage of:
1. people over age 21 who are without jobs and actively seeking for employment
2. people in the civilian labor force who are without jobs and actively seeking for employment
3. the civilian institutionalized population that is out of work and actively seeking for employment
4. the U.S. population that is out of work and actively seeking for employment
5. none of the answers given is correct
An individual is said to be unemployed who is in the age group of 16 to 60 years and at the current wage rate he is willing to work but not getting work.
Labor force is sum of unemployed and employed persons.
LF=Employed+ Unemployed and looking for work
Unemployment rate= (unemployed / LF)*100
Hence it can be said that the unemployment rate measures the percentage of people in the civilian labor force who are without jobs and actively seeking for employment.
Hence option 2 is the correct answer.
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