People can calculate the unemployment rate by dividing the number of people who are employed by the number of people in the labor force, and multiplying the result by 100 percent. Those in the labor force are over 16 years old, actively working or looking for work.
People such as full-time students, parents who are not seeking employment and those unable to work due to physical or mental impairment are not part of the labor force in the equation to calculate unemployment rates. Those that are working full or part-time, are self-employed or work in a family business are employed. People who are able to work and have looked for jobs but not found them in the last four weeks and those that have not returned to a previous employer are unemployed.