Unemployment. Unemployment Rate. The Unemployment Rate = the number unemployed divided by the workforce. UNEMPLOYED / WORKFORCE. Unemployment Rate ( URate ). Workforce = 200M, 20M are unemployed, the URate = 10% 150M, 30M are unemployed, URate = _________
1. hidden unemployment or discouraged worker. This is the worker who is no longer looking for a job so he would not be included with the unemployment number. This worker is still a problem for the economy. We are not using this labor resource efficiently.
Causes unemployment numbers to be understated
Economic Impact of unemployment is that our standard of living goes down and the economy faces an economic slowdown.