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  1. Home
  2. /Glossary
  3. /Unemployment Rate
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macro

Unemployment Rate

The percentage of the labor force that's jobless and actively seeking work.

Definition

The percentage of the labor force that's jobless and actively seeking work. Low unemployment is generally good for the economy but can pressure wages and inflation. The Fed watches employment closely when setting monetary policy.

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Related Terms

Recession

An economic downturn typically defined as two consecutive quarters of declining GDP.

GDP (Gross Domestic Product)

The total value of goods and services produced in a country over a period, usually a quarter or year.

Federal Reserve (Fed)

The central bank of the United States that sets monetary policy.

Basis Point

One hundredth of a percentage point (0.

CBDC (Central Bank Digital Currency)

A digital form of a country's official currency issued and controlled by its central bank.

Consumer Price Index (CPI)

A measure of average price changes for a basket of consumer goods and services.

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