Unemployment

Unemployment is the failure to use available resources particularly labor to produce desired goods and services. There are certain people in the labor force (employed+ unemployed). This includes:

-Anyone above the age of 16
- Willing and able to work

People not in the labor force include:

-Military
- Retired
- Student
- Disabled
- Homeworkers
- People in mental institutions
- People in Jail
- People not looking for a job



The acceptable unemployment rate in the US is 4-5 percent. This is also known as Full Employment or Natural Rate of Unemployment (NRU)

Formula for calculating Unemployment Rate: # of unemployed/ # of employed + # of unemployed . 100