What is it?
The Unemployment Rate (UEMP) is defined as the number of people unemployed who are “actively” seeking employment in the last 4 weeks over the total labor force. The U-6 rate (UEMP6) is defined as all unemployed as well as “persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the labor force.” That means the unemployed, the underemployed and the discouraged.
Who is interested?
Analysts, High level executives, owner operators
What does it tell me?
UEMP generally rises or falls in the wake of economic activity. When the economy is doing well the unemployment rate generally falls whereas the opposite occurs when the economy does poorly. A “healthy” UEMP is considered to be around 4.5%. If the UEMP is too low that can mean over-employment where there are not enough skilled workers available to fill positions. Over-employment is good for job seekers, but bad for businesses. UEMP6 is a more complete view of unemployment as it includes a larger base of people. It measures the employable workforce.
Example: A user wants to see the unemployment rate in the country. They would enter UEMP.USA.
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