Unemployment Rate

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DEFINITION of 'Unemployment Rate'

The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

INVESTOPEDIA EXPLAINS 'Unemployment Rate'

From 1948 to 2004, the monthly U.S. unemployment rate has ranged between about 2.5% to 10.8%, averaging approximately 5.6%. The unemployment rate is considered a lagging indicator, confirming but not foreshadowing long-term market trends.

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