Macroeconomics For The Average Joe
The unemployment rate is the share of people in the labor force who don't have a job but are actively looking for one.
The US rate comes from a monthly household survey in the Bureau of Labor Statistics jobs report. People who have stopped looking aren't counted as unemployed, which is why economists also watch broader measures such as U-6.
A rising unemployment rate is one of the clearest signs the economy is weakening, and it is half of the Fed's dual mandate.
Jobs report (nonfarm payrolls) · Unemployment rate · Initial jobless claims
The unemployment rate is the share of people in the labor force who don't have a job but are actively looking for one.
In the US, rates around 4% or below have historically been considered low.
Not in the headline rate. They are included in the broader U-6 measure.
Jobs report · Nonfarm payrolls · Recession · Federal Reserve (the Fed)
All plain-English definitions → · Educational only, not investment advice.