Macro Factors

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for work.

The Unemployment Rate is a lagging economic indicator that measures the health of the labor market. A rising unemployment rate typically confirms that the economy has already entered a recession, as businesses cut labor costs in response to falling demand.

Paradoxically, in modern markets, a slight rise in unemployment from very low levels can temporarily boost stock prices if it signals to the central bank that inflation has cooled and interest rates should be cut.

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