Unemployment is one of the best known economic indicators and it is a key component in the health of a nation’s economy and job market. The unemployment rate is the percentage of jobless people out of a country’s labor force that are available and actively seeking work. Unemployment is a lagging indicator, meaning that it tends to rise or fall in response to changes in the overall economy. The official rate is calculated each month by the Bureau of Labor Statistics, a division of the Department of Commerce.
The exact method for measuring unemployment varies from country to country. This can lead to discrepancies when comparing the rate between countries. For example, in many European countries those who are taking part in employment agency training courses are not counted as unemployed, even though they may be able to work.
In the US, the data on unemployment is based on a monthly survey of the civilian population 16 years old and older. The survey is designed to identify those who are unemployed as well as those who are employed and looking for a job. It also includes those who are working part-time but would like to have full-time jobs. The BLS releases the results of the survey each month in a news release called The Employment Situation.
While economists and academics often debate the causes and remedies for unemployment, most agree that it is a serious problem. High levels of unemployment reduce consumer spending which can slow the growth of the economy. They can also increase the burden on government resources through increased reliance on social welfare programs and lost tax revenue.