1. The unemployment rate is calculated by
a. Labor Force/Civilian Non-institutional Population
b. Unemployed/Labor Force
d. Change in Unemployment/Change in Labor Force
The correct answer should be "b". Unemployment is a dynamic calculation based on the number of workers becoming separated from employment, re-entrants into employment, and unemployed workers finding work. The current unemployment rate stands at about 9%. The author of this blog believes that this rate will continue for a very long time. The graph to the right is from the Congressional Budget Office. Recession, and thus, unemployment, should continue through 2016 if you believe the forecast.