Description:

The number of people unemployed that are part of the labor force, expressed as a percentage. The labor force is defined as those who are 16 and older, seeking employment, not including full time students.

Released:

The first Friday of the month

Calculation:

2 methods of calculation: Household surveys and Establishment Survey. For the HH survey the government contacts 60,000 households of non-farm, farm, & self employed workers. The Establishment survey is conducted by gathering information from employers as opposed to households. The Establishment survey is conducted by the BLS (Bureau of Labor Statistics) and they contact 400,000 companies.

Key Point:

The unemployment numbers tend to have a high impact on the markets due to the fact that the surveys are released very close to when they are taken. This indicator is one of the most important ones because it is a strong predictor of overall economic activity. When people are employed they spend money which is good for the economy and the opposite is true for the unemployed.

Release site: Click here