Unemployment Rate (redirected from unemployment)

Unemployment rate

The percentage of the people classified as unemployed as compared to the total labor force.

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Unemployment Rate

The percentage of a population's workforce not working but willing to work and actively seeking a job. A high unemployment rate is considered a negative sign both economically and socially. However, the unemployment rate is a lagging indicator: it rises and falls in response to a macroeconomic change rather than in anticipation of one. This may be because employers do not hire employees unless they are confident that they will be able to afford to retain them.

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Unemployment Rate

What Does Unemployment Rate Mean?

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

Investopedia explains Unemployment Rate

The unemployment rate is considered a lagging indicator, confirming what happened in the past but not predicting what may happen in the future. Unemployment numbers often are revised up or down months after they have been reported. Therefore, it may not be wise to base investment decisions on initial unemployment figures.

Related Terms:
• Business Cycle
• Fundamental Analysis
• Gross Domestic Product
• Market Economy
• Quantitative Analysis