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US Unemployment Rate

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Pro Tip

The Unemployment Rate is an important lagging indicator.

What is the Unemployment Rate?

“The total labor force consists of all employed and unemployed people within an economy. The unemployment rate provides insights into the economy’s spare capacity and unused resources. Unemployment tends to be cyclical and decreases when the economy expands as companies contract more workers to meet growing demand.” – Focus Economics

 

Why is the Unemployment Rate so important?

“While no single number captures all the nuances in the health of the labor market, the unemployment rate is considered one of the most important economic indicators. The unemployment rate measures the share of workers in the labor force who do not currently have a job but are actively looking for work.” – Economic Policy Institute

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