In labor force statistics, the unemployment rate is interpreted as the percentage of the:

• A. employed workers who are working part-time involuntarily
• B. entire adult population that is unemployed
• C. labor force that is unemployed
• D. working-age population that is employed

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the definition of the unemployment rate. It is the percentage of the labor force that is unemployed, not the entire population or only part-time workers.
2. Step 2: Recall that the labor force consists of all employed and unemployed individuals who are actively seeking work.
3. Step 3: The unemployment rate formula is given by: \[\text{Unemployment Rate} = \frac{\text{Number of Unemployed People}}{\text{Labor Force}} \times 100\]
4. Step 4: Note that the labor force excludes people who are not actively seeking work, such as discouraged workers or those not looking for jobs.
5. Step 5: Therefore, the unemployment rate measures the proportion of the labor force that is unemployed, which matches the correct answer: 'labor force that is unemployed.'