What does unemployment refer to?

Unemployment refers specifically to individuals who are not currently engaged in work but are actively seeking employment. This definition highlights the aspect of readiness and willingness to work, differentiating those who may be voluntarily out of the labor force or retired from those who are in search of jobs. Therefore, understanding unemployment in this context is crucial as it provides insights into the labor market and helps in measuring economic health. The concept encompasses individuals who have been laid off, recent graduates seeking their first job, or anyone who is currently unemployed but actively pursuing job opportunities.