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When we include discouraged workers and unemployed workers in calculations of the unemployment rate much higher than the official unemployment rate.
The official unemployment rate. It is the total number of unemployed people who are expressed as a percentage of the civilian labor force. The formula to calculate official unemployment rate is, (Total Unemployed ÷ Labor Force) x 100. The discouraged workers are the total number of unemployed people. It is expressed as the percentage of the civilian labor force plus discouraged workers. The formula for calculation is ( (Total Unemployed + Discouraged Workers) ÷ (Labor Force + Discouraged Workers) ) x 100.
Learn more about Unemployment.
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