The rate of unemployment is the number of unemployed persons divided by the total labour force where the labour force comprises of both employed as well as unemployed persons. Employed individuals are the one which is above 16 years of age who do any work as paid workers or work as unpaid employees in a firm operated by members of the family. It also includes people who are not working but previously working somewhere from which they become temporarily unemployed due to vacation, dispute job, maternity or paternity leave, labour management, job training or any other personal issues. In all these cases people are considered employed irrespective of whether they are being paid or not during the period they were seeking the jobs.
Unemployed persons are the individuals who are above the age of 16 years and had no employment in the reference week and were available o work and also made specific efforts to find new employment some time. Also, the people who are doing activity in their own houses such as painting, housework or repairing or the people who are volunteering their work for the organizations are considered as unemployed.
All these employed and unemployed persons are a part of the labour force of the country.
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