Explanation
Unemployment rate and the official unemployment rate
The difference between the two is basically the group of people included in the unemployed number. For the unemployment rate, the unemployed includes anyone who is at least 16 years of age, looking for work within the past four weeks, and someone who is available to accept a job and this includes the part-time workers looking for a full-time job.
On the other hand, the Official unemployment rate considers unemployed as someone who willing and available to work, has been seeking work for the past four weeks, and has no part-time or full-time job. This means that the official unemployment rate does not count individuals who have part-time and temporary jobs in the number of unemployed.
If more people leave part-time jobs to become full-time workers, this changes the unemployment rate but does not change the official unemployment rate. Remember that the formula for the unemployment rate is the total number of unemployed divided by the total labor force.
Labor force = Total number of people employed and unemployed in the economy, who are at working age.
Unemployment Rate = Unemployed / Civilian Labor Force
