What is the term for the percentage of people in the labor force who are not employed?

The term that refers to the percentage of people in the labor force who are not employed is known as the unemployment rate. This metric is crucial for understanding the health of an economy, as it indicates the proportion of individuals who are actively seeking employment but are unable to find work.

The unemployment rate is calculated by dividing the number of unemployed individuals by the total labor force and then multiplying by 100 to get a percentage. This figure is a key indicator used by policymakers to assess the economic environment, guiding decisions related to economic policy, job creation initiatives, and social programs.

In contrast, the employment rate measures the proportion of the working-age population that is currently employed, while the labor force participation rate reflects the percentage of the working-age population that is either employed or actively seeking work. The job vacancy rate, on the other hand, indicates the ratio of job openings to the total number of jobs available in the market. Each of these terms offers different insights about the labor market, but the unemployment rate specifically identifies those who are without a job despite being part of the workforce.