Unemployment
Percentage of labor force without work/actively seeking.
Formula
Unemployment Rate = (Unemployed ÷ Labour Force) × 100
Real World
During the 2008 financial crisis, UK unemployment rose above 8%, cutting consumer spending and forcing retailers like HMV to report sharp falls in revenue.
Exam Focus
State the type of unemployment (cyclical/structural) and explain its specific effect on the business in context — examiners reward precision.
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