Unemployment Rate is a key economic indicator that measures the proportion of the labour force that is without a job but actively seeking employment. It is calculated using the formula: Unemployment Rate = (Number of Unemployed Individuals / Labour Force) × 100. The labour force includes both employed individuals and those unemployed who are willing and able to work. This metric is essential for gauging the strength and direction of an economy. A rising unemployment rate often signals economic distress, reduced consumer spending, and lower productivity, while a declining rate generally indicates economic growth, increased business activity, and job creation. The unemployment rate also guides government policy on issues such as monetary interventions, welfare programs, and job creation schemes. For investors and businesses, it offers insight into economic confidence and labour market conditions, influencing decisions on hiring, investment, and expansion. By providing a snapshot of labour market dynamics, the unemployment rate serves as a barometer of economic stability and social well-being.