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Unemployment Rate The unemployment rate is defined as the percentage of the labor force that is unemployed. The labor force consists of those who are either working or looking for work (Taylor 2001). Economists say the rise of the unemployment rate can almost always be contributed to by a recession. Even as the economy rises and jobs are added to the economy the unemployment rate may still rise as well. This is due to the fact that the two numbers are generated from different surveys. The unemployment rate comes from a survey of households, whereas the payrolls data comes from a survey of businesses. Also, that payroll data is subject to dramatic revision. For example, the government’s initial reading of growth outside the farm sector in March found 58,000 new jobs, bu