Unemployment rate = (Number of unemployed people ÷ Labor force) × 100
Labor force = Employed people + Unemployed people
Unemployed people = People without a job who are actively looking for work
Example: if 5 million people are unemployed and the labor force is 100 million, the unemployment rate is 5%
Formula: (5,000,000 ÷ 100,000,000) × 100 = 5%