To answer this question, let us use the following definitions from the Bureau of Labor Statistics:
1. Unemployed - you must be over 16, and available to work full-time, actively looking for work during the past four week period.
2. The labor force - includes the unemployed plus the employed, no one else
3. Unemployment rate - the number of unemployed divided by the total labor force.
To calculate:
Let X = Unemployment Rate = Unemployed / Total Labor Force
X = (Total Labor force – Employed)/Total Labor Force
X = (40-36)/40
X= 4/40
X = .10 or 10%
