Unemployment is the condition of being without a job when you want and need to work. When someone is unemployed, they're actively looking for work but haven't found a position yet. A person who retires, stays home to raise children, or chooses not to work isn't considered unemployed because they're not seeking employment.

Economists track unemployment carefully because it reveals important information about a country's economy. When unemployment is high, many people struggle to pay for housing, food, and other necessities. When unemployment is low, most people who want jobs can find them, and the economy typically grows stronger.

People become unemployed for different reasons. Sometimes companies reduce their workforce during difficult economic times. Other times, industries change: when factories began using robots for assembly work, many factory workers became unemployed until they could learn new skills. Someone might also become unemployed after moving to a new city, graduating from school, or leaving a job that wasn't working out.

An unemployment rate measures what percentage of people seeking work can't find it. During the Great Depression of the 1930s, unemployment reached 25 percent in the United States, meaning one in four workers couldn't find jobs.