Define unemployment rate.

The unemployment rate is defined as the percentage of the labor force that is unemployed and actively seeking employment. This measure provides insight into the health of the labor market and the overall economy.

The labor force includes individuals who are of working age and are either employed or unemployed but seeking work. To calculate the unemployment rate, the number of unemployed individuals is divided by the total labor force and then multiplied by 100 to express it as a percentage.

This definition highlights the active nature of the individuals counted in the unemployment statistics. It is important because it distinguishes between those who are out of work and not looking for jobs (not considered part of the labor force) and those who are actively seeking employment (who are counted in the unemployment rate).

By focusing on those actively seeking employment, the unemployment rate serves as a more accurate reflection of the labor market dynamics than simply counting all individuals without jobs, which may include those who are not currently engaged in job searching. In contrast, other options either fail to specify the labor force or wrongly define the scope of unemployed individuals.