The unemployment rate measures the share of people in the labor force who are without a job but actively seeking work. In the United States, the rate is compiled and published monthly by the Bureau of Labor Statistics (BLS).
Unemployment rate = (number of unemployed people) / (labor force) × 100. The labor force includes people who are employed and those who are unemployed but actively looking for work. People not in the labor force—such as students, retirees, and many homemakers—are not counted in the denominator.
Economists and policymakers watch the unemployment rate as a broad gauge of labor market health and cyclical conditions. A rising rate can signal weakening demand for workers, while a falling rate can indicate strengthening demand. Markets may interpret changes in the unemployment rate alongside other indicators, such as wages, productivity, and inflation, to assess the overall pace of economic growth and the stance of monetary policy.
The unemployment rate is a broad, timely indicator but it does not capture all labor underutilization. For example, it excludes discouraged workers and people who want full-time work but are only able to find part-time jobs. Other metrics, such as the labor force participation rate and broader measures of underemployment, help provide more context.
In the latest monthly release, the unemployment rate stood at 4.5 percent.
Labor Force · Labor Force Participation Rate · Nonfarm Payrolls (NFP) · Gross Domestic Product (GDP) · Inflation