How is unemployment defined in the United States?

If someone has a job, they’re defined as “employed.” But does that mean that everyone without a job is unemployed? Not exactly.

A minor without a job isn’t unemployed. Someone who has been incarcerated also isn’t counted. A retiree, too, does not count toward the unemployment rate.

For the official statistics, you have to meet quite a few criteria to be considered unemployed in the U.S. For instance, if you’re without a job, but have actively looked for work in the past four weeks, you are considered unemployed.

In times of recession, when people are faced with long-term unemployment and lots of discouragement, the official rate might not count some of the people that you would otherwise consider unemployed.

This video will give you a clear picture of how the unemployment rate is defined and build a foundation for further understanding this important facet of labor markets.

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