How to calculate the unemployment rate
The number of unemployed in the country and, consequently, the level of unemployment is determined in two different ways. The first of them is based on registration of the unemployed in the official bodies. Only those who are referred to the appropriate state, municipal or public service (abroad this labor exchange in our country – Federal employment service), receive the status of unemployed. These people are registered by bodies of the state into account and thus included in official statistics.
The second method is based on the methodology developed by the international labour organization (ILO), which is not so important how the unemployed engaged in job search (refers to the employment service or not), and all that matters is that he is really looking for her (not to appear). At least if he does it in the last four weeks.
The second method used a sample of the survey households. The inevitable statistical error, but, nevertheless, this method provides a much more reliable and accurate information about the actual number of employed in the economy and the real number of unemployed, especially of the countries in which many unemployed people are not very eager to register, to register.
Thus, to calculate the unemployment rate (u), it is necessary to calculate the percentage of the total number of unemployed to the number of the total economically active population or labour force.
The calculation is easy to do, to do this, use the following formula:
u = U / LF = U/ E U
where u is the unemployment rate, U – unemployed, E – employed, NLF – the economically inactive population, LF is the economically active population (labour force), and N is the entire population of the country.