Unemployment Rate
The percentage of the labor force seeking work.
The Unemployment Rate represents the number of unemployed people as a percentage of the labor force. It is a lagging indicator, meaning it generally rises or falls *after* the economy has changed direction.
Understanding the Data
To be counted as unemployed, you must be actively looking for work. Giving up on looking removes you from the labor force completely.
Key Takeaways
Low unemployment can lead to wage inflation.
High unemployment reduces consumer spending.
Lagging indicator of economic health.
Related Terms
Unemployment Rate
The percentage of the labor force seeking work.
The Unemployment Rate represents the number of unemployed people as a percentage of the labor force. It is a lagging indicator, meaning it generally rises or falls *after* the economy has changed direction.
Understanding the Data
To be counted as unemployed, you must be actively looking for work. Giving up on looking removes you from the labor force completely.
Key Takeaways
Low unemployment can lead to wage inflation.
High unemployment reduces consumer spending.
Lagging indicator of economic health.
Related Terms
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