Why don't the employment rate and unemployment rate sum up to 1?
According to Turkstat, the Turkish employment rate was 44.9 and the unemployment rate was 10.1 in December 2012. I would expect the unemployment rate to be 1 - employment rate. How are those numbers calculated so that they won't sum up to 1?
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"Unemployed" are people who are actively searching for a job. A lot of people are not employed, but are not "unemployed" because they're not looking for a job. Being infants, housewives, retired, students, etc.
The employment rate is the percentage of people in the country who are currently employed compared to the total population of the country.
Unemployment rate is the percentage of people looking for work compared to the total number of people currently in work. This number can increase in 2 ways. If the number of people looking for work increases and/or if the number of people employed decreases. The opposite is the case for the unemployment rate to decrease.
That is why it is important to look at the details behind the numbers to understand what is really happening to the unemployment rate.
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