Civilian Unemployment Rate

The rate of civilian unemployment can be seen in this graph. The civilian unemployment rate is calculated by the number of unemployed people divided by the total size of the labor force and is expressed as a percentage. The labor force consists of people who are employed, people who are jobless, looking for jobs, and available for work. Labor force can be defined as people who are either employed or unemployed. The gray shades areas are periods of recession and the effect it has on unemployment can be greatly seen.

The recession of the 1980's shows a peak of unemployment. This time saw a rise in inflation, as well as a rise in unemployment. During this period, firms were laying off and firing workers because of the high inflation rate. Some workers may have also been asked to take lower wages. This can also be seen during the Great Recession of 2008-2009. This recession also impacted the unemployment rate tremendously. These were the two highest points that unemployment has been at since the Great Depression. The lowest point that can be seen on the graph is the year 2000, unemployment was at 4.0. This is lowest that unemployment has been since the end of the Great Depression.