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.

BREAKING DOWN '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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RELATED FAQS
  1. How does the U.S. Bureau of Labor Statistics calculate the unemployment rate published ...

    The unemployment rate is one of the most closely followed indicators, used by businesses, investors and private citizens ... Read Full Answer >>
  2. What are some of the key shortcomings of how the U.S. unemployment rate is determined ...

    Each month, the Bureau of Labor Statistics (BLS), a division of the U.S. Department of Labor, announces the unemployment ... Read Full Answer >>
  3. What is the key difference between the participation rate and the unemployment rate?

    The participation rate and unemployment rate are economic metrics used to gauge the health of the U.S. job market. The key ... Read Full Answer >>
  4. Do rising unemployment rates tend to increase or decrease investor sentiment and ...

    Rising unemployment rates tend to decrease investor sentiment and consumer confidence. Unemployment is one of the most important ... Read Full Answer >>
  5. What caused the stock market crash of 1929 that preceded The Great Depression?

    The stock market crash of 1929 was due to a market that was overbought, overvalued and excessively bullish, rising even as ... Read Full Answer >>
  6. What economic indicators are important for investing in the automotive sector?

    The most important economic indicators for investing in the automotive sector are auto sales, the unemployment rate, consumer ... Read Full Answer >>
  7. How can investors use trends in the unemployment rate to evaluate the outlook of ...

    Credit services companies provide financial services in the form of credit and loans to individuals and businesses; these ... Read Full Answer >>
  8. What does the Bureau of Labor Statistics do?

    The Bureau of Labor Statistics (BLS) is an agency of the U.S. Department of Labor that has been in operation since 1884. ... Read Full Answer >>

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