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Unemployment rate

The share of the labor force actively looking for work but not employed, reported monthly with NFP.

The rate comes from a household survey, separate from the payroll survey that produces the nfp headline, so the two can disagree. A rising unemployment rate is one of the most reliable recession signals (the Sahm rule triggers on a 0.5-point rise from its low).

The fomc has a dual mandate: stable prices and maximum employment. This number is half of that mandate.

Example: unemployment ticks from 3.7% to 4.1% over four months. The three-month average is now 0.5 points above its 12-month low, which historically has coincided with the start of recessions.

Related: nfp, fomc, gdp, economic-calendar

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