Ryan Kelly

FRED Unemployment Rate

The Unemployment Rate (UNRATE) is a key economic indicator that measures the percentage of the labor force that is currently unemployed but actively seeking employment. The rate is published monthly by the Bureau of Labor Statistics (BLS) as part of its Employment Situation report.

The labor force is defined as all individuals aged 16 and older who are either employed or actively seeking employment. The unemployment rate is calculated by dividing the number of unemployed individuals by the total labor force and multiplying by 100. For example, if the number of unemployed individuals is 5 million and the total labor force is 150 million, the unemployment rate would be 3.3% (5 million divided by 150 million multiplied by 100).

The unemployment rate is an important indicator of the health of the labor market and the overall economy. High levels of unemployment can indicate weak economic growth and a lack of job opportunities, while low levels of unemployment can indicate a strong economy and tight labor market conditions.

The unemployment rate is often used by policymakers to make decisions about monetary policy and fiscal policy. For example, if the unemployment rate is high, policymakers may take steps to stimulate economic growth, such as lowering interest rates or increasing government spending on infrastructure projects.

However, it is important to note that the unemployment rate does not capture all aspects of the labor market, such as the number of individuals who are underemployed (working part-time but seeking full-time employment) or who have given up on finding work altogether. Therefore, it is often used in conjunction with other labor market indicators to provide a more complete picture of the state of the economy.

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FRED Unemployment Rate

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FRED Unemployment Rate