Q. Which one of the following best describes the term Unemployment Rate (UR)?

[A] It is the ratio of the labor force participation rate to the total population.

[B] The proportion of the economically active population that is currently engaged in part-time employment but seeking full-time opportunities.

[C] The percentage of the labor force that is currently not employed but actively seeking and available to work.

[D] It measures the ratio of individuals who have voluntarily left their jobs to those who are currently employed.

Answer: C
Notes:

Explanation – The unemployment rate is the percentage of people in the labor force who are not currently employed but are actively looking for work and are available to start working. It serves as a key economic indicator, reflecting the health of an economy. A high unemployment rate suggests economic challenges, while a low rate indicates a strong job market. The Periodic Labour Force Survey (PLFS) 2023-24 reports no significant change in the overall unemployment rate (UR), which remains at 3.2%, like the previous year. The Labour Force Participation Rate has increased both in rural and urban areas.

Source: The Hindu

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