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  • What do you know about the unemployment rate?
  • Well to understand, you will need to take a look at the labor force first.
  • Unemployment is just the sum of people employed and the people unemployed.
  • Calculating unemployment is just the unemployed divided by the employed right?
  • No, the unemployment rate is the # unemployed divided by the labor force. The labor force is the combination of people working and people able and willing to work.
  • Wait, so not everyone in the labor force has a job? Are you a part of the labor force?
  • Yes, I am in the labor force.
  • The labor force only consists of people who work or who can work and are older than 16  
  • I'm not allowed to be in the labor force, because I am too young.
  • What's wrong?
  • The labor force only consists of people who work, could be working, and are older than 16.
  • I am currently working!
  • I am in school full time so I don't have a job
  • Since he is still in school he does not count towards unemployment or the labor force.
  • I am a military veteran.
  • That's right!
  • After this day, Trumbama knew that unemployment was just the unemployed divided by the labor force.
  • Wait, so since you don't help the economy in any way but still do an important job you do not count in the unemployment 
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