What this calculator does
The unemployment rate is the share of the labour force that is unemployed but actively looking for work, expressed as a percentage. It is one of the most widely quoted economic indicators, used to gauge the health of a labour market and to compare regions or time periods against each other.
Working out how to calculate the unemployment rate only needs two figures: the number of people counted as unemployed, and the total labour force, meaning everyone employed plus everyone unemployed and actively seeking work. People not looking for work at all, such as retirees or full-time students, are not part of the labour force and do not enter the calculation either way.
The formula
Divide the number of people unemployed by the total labour force, then multiply by 100 to express it as a percentage. The labour force is the sum of everyone employed and everyone unemployed and actively seeking work, not the whole population.
| Term | Meaning |
|---|---|
| Unemployment rate | The percentage of the labour force that is unemployed: (unemployed ÷ labour force) × 100. |
| Labour force | Everyone employed plus everyone unemployed and actively seeking work. |
| Employment rate | The complementary share of the labour force that is employed. |
The inputs explained
| Field | What to enter |
|---|---|
| Number unemployed | The number of people counted as unemployed, meaning without work and actively seeking it. |
| Total labour force (employed + unemployed) | The total labour force: everyone employed plus everyone unemployed and seeking work. |
When to use it
Reading a labour market report
National statistics agencies publish the unemployed count and labour force figures separately; recalculating the rate directly checks a headline figure against its underlying components.
Comparing regions or time periods
The unemployment rate strips out differences in population size between regions, since it is a share of the labour force rather than a raw headcount, making it a fairer basis for comparison.
Modelling a scenario
Testing how the rate would move if a given number of people lost or found work, at a fixed labour force size, shows how sensitive the headline figure is to a change of that size.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the unemployment rate changes as the number unemployed changes
A fixed labour force of 165,000,000, across a range of unemployed counts.
| Number unemployed | Unemployment rate | Employment rate (share of labour force employed) |
|---|---|---|
| 4,000,000 | 2.42% | 97.6% |
| 5,500,000 | 3.33% | 96.7% |
| 7,000,000 | 4.24% | 95.8% |
| 8,500,000 | 5.15% | 94.8% |
| 10,000,000 | 6.06% | 93.9% |
| 12,000,000 | 7.27% | 92.7% |
Questions
Does the unemployment rate count everyone without a job?
No. It only counts people who are unemployed and actively seeking work as part of the labour force. People without paid work who are not looking for it, such as retirees, full-time students or people who have stopped searching, are excluded from the labour force entirely and do not affect the rate.
Why can the unemployment rate fall even if fewer people have jobs?
If people stop actively looking for work, they leave the labour force altogether rather than counting as unemployed, which can shrink the labour force enough to lower the reported rate even without any increase in employment.
What is considered a low or high unemployment rate?
What counts as low or high varies by country, economic cycle and how the labour force is defined locally, so there is no single universal benchmark. Comparing a rate against its own historical trend is usually more informative than judging it against an arbitrary threshold.
Is the unemployment rate the same as the number of unemployed people?
No. The unemployment rate is a percentage of the labour force, while the number of unemployed is a raw headcount. A rate can stay the same even as the raw number changes, if the labour force grows or shrinks by a matching amount.
To see turnover among a specific employer's own workforce rather than the whole labour market, see the employee turnover rate calculator. For hourly, weekly and annual pay conversions once someone is employed, see the salary and hourly rate converter.