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Which of the following best defines 'unemployment rate'?

ATotal population without jobs
BNumber of people not working divided by the total population
CNumber of people without jobs and looking for one, divided by the labour force
DNumber of factories shut down per year
Answer & Solution
Correct answer: C. Number of people without jobs and looking for one, divided by the labour force
Unemployment rate = (unemployed who are seeking jobs) / (employed + unemployed seeking jobs). It is NOT divided by total population — children, retirees etc are excluded from the labour force.
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