Economy at a Glance - Unemployment Rate
What is the unemployment rate?
The unemployment rate represents the number of unemployed people as a percentage of the labor force. The labor force is made up of people who have a job and people who are jobless that are looking for a job and available for work.
How does the unemployment rate factor into the Fed's decisions?
The Federal Reserve has a dual mandate to promote maximum employment and stable prices for the American people. Federal Reserve policymakers closely monitor the unemployment rate to help judge whether the U.S. economy is at (or close to) maximum employment and make decisions about the appropriate federal funds rate that will best support maximum employment while maintaining stable prices.
What is maximum employment?
Maximum employment is the highest level of employment the economy can sustain over time without leading to excessive inflation.
Related Information
How the Government Measures Unemployment (Bureau of Labor Statistics)