Unemployment Rate

Unemployment rate is the percentage of the total labor force which is unemployed but is actively seeking work.

The unemployment rate usually draws attention during bull markets when it gets too low, causing worries of an overheating economy and potential inflation and rate hikes by the central bank. It also draws attention in bear markets as a high unemployment rate could restrict consumer spending and worsen a recession.

The unemployment rate is usually regarded as a lagging indicator of economic conditions.