What is the term for the percentage of people in the labor force who are not employed?

The term that refers to the percentage of people in the labor force who are not employed is the unemployment rate. This metric specifically measures the proportion of the labor force that is actively seeking work but is unable to find employment. It is an important indicator of economic health and labor market conditions.

Understanding this concept is crucial because it provides insight into the effectiveness of the labor market, the availability of jobs, and broader economic performance. A high unemployment rate might suggest economic distress, while a low rate typically indicates a healthy job market.

Other terms like the underemployment rate, employment rate, and labor force participation rate refer to different aspects of labor and employment. The underemployment rate looks at individuals who are working part-time but would prefer full-time work. The employment rate measures the proportion of the entire population that is employed, while the labor force participation rate indicates the proportion of the working-age population that is either working or actively seeking work. These metrics provide valuable context but do not specifically define the segment of the labor force that is unemployed, making the unemployment rate the correct term for this question.