Definition of Unemployment rate:
Percentage of total workforce who are unemployed and are looking for a paid job. Unemployment rate is one of the most closely watched statistics because a rising rate is seen as a sign of weakening economy that may call for cut in interest rate. A falling rate, similarly, indicates a growing economy which is usually accompanied by higher inflation rate and may call for increase in interest rates.
In the U.S., the U-3 rate, which the Bureau of Labor Statistics (BLS) releases as part of its monthly employment situation report, is the most commonly cited national rate. It is not the only metric available, and measures unemployment fairly narrowly. The more comprehensive U-6 rate is an alternative measure of unemployment that includes groups such as discouraged workers, who have stopped looking for a new job, and the underemployed, who are working part time because they can't find full time work. .
The unemployment rate is the percent of the labor force that is jobless. It is a lagging indicator, meaning that it generally rises or falls in the wake of changing economic conditions, rather than anticipating them. When the economy is in poor shape and jobs are scarce, the unemployment rate can be expected to rise. When the economy is growing at a healthy rate and jobs are relatively plentiful, it can be expected to fall. .
How to use Unemployment rate in a sentence?
- The unemployment rate in Charles city was so high, he had to move to the nearest city where the unemployment rate was low, so he could increase his chances of getting a job.
- There are six different ways the unemployment rate is calculated by the Bureau of Labor Statistics using different criteria.
- While overall the unemployment rate in the state of North Carolina was above the nations average, it was especially high for retail workers.
- The most comprehensive statistic reported is called the U-6 rate, but the most widely used and cited is the U-3 rate.
- The unemployment rate is the proportion of the labor force that is not currently employed but could be.
- Due to the ongoing war, the unemployment rate fell to record lows because of the need for workers in factories and other war-related professions.
Meaning of Unemployment rate & Unemployment rate Definition