The unemployment rate is defined as the percentage of jobless workers in a country’s labor force. Unemployment rate is a lagging indicator, hence it does not help investors and traders predict future economic and financial conditions. However, unemployment is important because it is a closely watched indicator widely followed by the public and the government.

Rising unemployment rates can affect consumer sentiment and also government and monetary policy reactions.

Unemployment Rate by Country

US Unemployment versus Jobless Claims

The most important coincident indicator used to monitor current employment conditions in the US economy is the weekly jobless claims? indicator published every Thursday.