US Unemployment - The Unemployment Rate refers to the percentage of people currently out of work, but actively seeking employment and willing to work. The Unemployment Rate figure is the single most popularly used figure to give a snapshot of labor market conditions in the US. Because the Federal Reserve is under strict pressure to keep unemployment under control, high unemployment puts downward pressure on interest rates, as the Fed will look to bolster the economy to remedy the employment situation. |
See also Euro-zone Unemployment | UK Unemployment | Canada Unemployment
More generally, unemployment is indicative of the economy's production, private consumption, workers' earnings, and consumer sentiment. A lower unemployment rate translates into more employed individuals with paychecks, which leads to higher consumer spending, economic growth and potential inflationary pressures. Conversely, high levels of unemployment are connected with lower incomes, lower spending, and economic stagnation.
