How to calculate the unemployment rate
The number of unemployed in the country and, accordingly, the unemployment rate is determined in two different ways. The first of them is based on the registration of unemployed in official bodies. Only those who applied to the relevant state, municipal or public service (abroad is the labor exchange, in our country - the Federal Employment Service), receive the status of unemployed. These people are registered by state registration authorities and are thus accounted for by official statistics.
The second method is based on the methodology developed by the World Labor Organization (ILO), according to which it is not so important exactly how the unemployed is looking for work (turns to the employment service or not), but what matters is that he is really looking for it (not for visibility ). At least if he does this for the last four weeks.
In the second method, selective sociological surveys of households are used. At the same time, a statistical error is inevitable, but nevertheless, this method gives much more reliable and accurate information about the real number of people employed in the economy and the real number of unemployed, especially in countries where many unemployed do not really want to register, register.
Thus, in order to calculate the unemployment rate (u), it is necessary to calculate the percentage ratio of the total number of unemployed to the total number of economically active population, in other words - the labor force.
The calculation is quite simple, for this use the following formulas:
u = U / LF = U / E + U,
where u is the unemployment rate, U is the unemployed, E is the employed population, NLF is the economically inactive population, LF is the economically active population (labor), and N is the entire population of the country.