What Is the 'Unemployment Rate'?

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

Term of the Day | Words to Know Unemployment Rate The unemployment rate is the percent of the labor force of the labor force that is jobless. It is a lagging indicator, meaning that it generally rises or falls in the wake of changing economic conditions, rather than anticipating them. When the economy is in poor shape and jobs are scarce, the unemployment rate can be expected to rise. When the economy is growing at a healthy rate and jobs are relatively plentiful, it can be expected to fall. In the U.S., the U-3 rate, which the Bureau of Labor Statistics (BLS) releases as part of its monthly employment situation report, is the most commonly cited national rate. It is not the only metric available, and measures unemployment fairly narrowly. The more comprehensive U-6 rate is an alternative measure of unemployment that includes groups such as discouraged workers, who have stopped looking for a new job, and the underemployed, who are working part time because they can't find full time work. Read More » Related to "Unemployment Rate" What You Need to Know About the Employment Report This widely watched indicator of economic well-being directly influences the market. Read More » U-3 vs. U-6 Unemployment Rate: What's the Difference? The U-3 unemployment rate is the most commonly reported in the U.S., but many economists view the U-6 rate as more meaningful. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » How the Unemployment Rate Affects Everybody Depending on how it's measured, the unemployment rate is open to interpretation. Learn how to find the real rate and how it affects everyone. Read More » Sign Up for 'The Market Sum' Want more Investopedia market news? Editor in Chief, Caleb Silver is here to you help you digest the days market moving events at the close of the bell. Subscribe» Related Definitions Lagging Indicator A lagging indicator is an observable or measurable factor that changes some time after the economic, financial, or business variable it is correlated with changes. Read More » Bureau of Labor Statistics The Bureau of Labor Statistics (BLS) is a government agency that produces a range of economic data about the U.S. economy. Read More » Seasonal Adjustment A seasonal adjustment is a statistical technique designed to even out periodic swings in statistics or movements in supply and demand related to changing seasons. Read More » Underemployment Underemployment is a measure of employment and labor utilization in the economy that looks at how well the labor force is being utilized. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy