Key points
- The US headline rate is reported monthly via the BLS jobs report.
- Rising unemployment typically signals economic slowdown.
- The Fed monitors labor slack to balance inflation and growth goals.
Example
November 2023: Unemployment 3.7%, 199K jobs added, average hourly earnings +4.0% year-over-year—showing tight labor market.
In history
Unemployment spiked to 14.7% in April 2020 (highest since the Great Depression), then fell to 3.4% by January 2023 (50-year low).
Related terms