Economic Indicators: Unemployment and Inflation

Unemployment Rate Definition: The unemployment rate is defined as the number of unemployed individuals divided by the labor force, multiplied by 100.
- ext{Unemployment Rate} = rac{ ext{Number of Unemployed}}{ ext{Labor Force}} imes 100
Labor Force Definition: The labor force comprises all individuals who are actively looking for jobs (unemployed) and those who are currently employed (in work).
- It represents the factory/production labor pool that businesses, offices, and government can draw from.
Example Calculation: If the labor force is 150 ext{ million}, consisting of 138 ext{ million} employed and 12 ext{ million} unemployed:
- ext{Unemployment Rate} = rac{12 ext{ million}}{150 ext{ million}} imes 100 = 8 ext{%}.

Definition: The labor force participation rate measures the percentage of the civilian adult population that is either employed or actively looking for work.
- ext{Labor Force Participation Rate} = rac{ ext{Labor Force}}{ ext{Civilian Adult Population}} imes 100
Exclusion from Labor Force: The labor force is not the entire general population because certain groups are not considered part of it:
- Stay-at-home parents/moms.
- Retirees.
- Military personnel (active duty).
  - Reason for Military Exclusion: Military personnel sign contracts for a number of years and do not have the choice to leave their jobs freely (doing so is considered AWOL or desertion). They are already utilized in the defense of the country and cannot be