Did you know that close to 18 million Americans met the definition of unemployed as of February of 2022? If you’re keen on monitoring the number of adults in the United States that aren’t able to find work despite actively looking then you’re going to need some math skills. There’s also a fair amount of research that you’ll need to do if you want to learn how to calculate the unemployment rate.
Calculating the unemployment rate is an effective way of gauging the process of the U.S. economy. Luckily for you, you’ve found the perfect article to learn all about the steps that you’ll need to take in order to calculate the unemployment rate on your own.
Keep reading this article to learn some helpful tips today!
Table of Contents
The Unemployment Rate Formula
The first thing that you’ll need to figure out if you want to learn how to calculate the unemployment rate is the formula that you’ll use. The standard formula involves dividing the labor force by the number of workers that are unemployed. You’ll get the labor force by combining the number of citizens in the workforce and those that are unemployed.
You can also learn more about what is unemployment by breaking down the formula into multiple steps for easy computing. It’s also a good idea to look into whether or not you qualify for the ERC tax credit at https://erctoday.com/apply-for-the-employee-retention-credit/.
1. Divide
You’ll want to start by dividing the number of unemployed American citizens by the number of people that get employed as well as those that are not. If there are 10 million unemployed people in the United States and 100 million employed Americans then you’ll end up with an unemployment rate of 10 percent.
2. Multiply
The next step requires the multiplication of the decimal number. Make sure that you multiply this number by 100 to get an accurate answer. In the case of the earlier example, you’d multiply 10 percent, or 0.10, by 100. An easy way of doing this is by shifting the decimal point over by two spots, which would result in 10 percent instead of 0.10.
3. Subtract
Next, you’ll subtract the employment rate from 100 in order to find the exact unemployment rate in the United States. You’d want to take that 10 percent and subtract it from 100 to get your final answer. In this example, it would result in 10 percent of Americans on the unemployment line while 90 percent of Americans have a job.
If you’re strong with math skills and you have access to a calculator then it will be a walk in the park figuring out how many people are unemployed.
Now You Know How to Calculate the Unemployment Rate
Learning how to calculate the unemployment rate is all about having patience, a few math skills, and a calculator. You’ll divide the unemployed workers in the U.S. by those the total number of workers nationwide. Next, you’ll multiply that number by 100 and then subtract that number from 100 in order to get the true unemployment rate.
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