The Bureau of Labor Statistics (BLS) calculates the official unemployment rate using the following formula: unemployment rate = unemployed / Labor Force x 100%. Note that the official unemployment rate does not account for discouraged workers. Under the (BLS) definition, the total number of unemployed workers is (9,944,000, 9,477,000 or How well does the unemployment rate measure unemployment? 1. Because the unemployment rate does not count 6,7 à it may underestimate the true extent of unemployment. Official data also ignores the problem of Underemployment – A situation in which workers are overqualified for their jobs or work fewer hours than they would prefer. 2. In this lesson summary review and remind yourself of the key terms and calculations used in measuring unemployment, the labor force, the unemployment rate, the labor force participation rate, and the natural rate of unemployment. Topics include cyclical, seasonal, frictional, and structural unemployment.