What does the unemployment rate measure?

The unemployment rate specifically measures the percentage of individuals within the labor force who are actively seeking work but are currently without employment. This rate is a critical indicator of the health of the economy, reflecting how many people are looking for work versus those who are employed. It helps to indicate the availability of jobs and overall economic conditions.

By focusing on those who are actively searching for employment, the unemployment rate provides insight into the dynamics of labor demand. It does not include individuals who are not in the labor force, such as retirees or students, nor does it factor in those who may have given up searching for work or are underemployed. This makes option B the clear correct choice, as it captures the essence of what the unemployment rate truly represents in economic measurement.