Definition: Unemployment refers to the condition in which individuals who are capable of working, actively seeking work, but are unable to find employment. The unemployment rate is the percentage of the labor force that is unemployed and actively seeking employment.
Understanding and analyzing unemployment is crucial for assessing the health of the economy and making informed decisions in business and policy-making. High unemployment rates can indicate economic distress and lower consumer spending, while low unemployment rates suggest a robust economy with higher consumer confidence and spending power. By monitoring unemployment trends, businesses, investors, and policymakers can develop strategies to address economic challenges, stimulate job growth, and support economic stability.
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