The unemployment rate is one of the most closely watched indicators of economic health. It tells us how many people are out of work, their reason for being out of work, and how long they have been unemployed. The statistics can be used to evaluate policies and plan for the future.
The main source of the data is the Current Population Survey, which the Census Bureau conducts for the Bureau of Labor Statistics (BLS). It includes a random sample of about 60,000 households each month and asks them if any members are either working or looking for a job. It has been conducted monthly since 1940. The data are released each month in a news release titled The Employment Situation. The BLS has many other statistical releases and resources available on its website.
High unemployment rates are bad for the economy in a number of ways. They reduce consumer spending, which is the driving force behind economic growth. They also impose a heavy burden on government resources through increased reliance on social welfare programs and lost tax revenue. And they can cause a sense of hopelessness that affects families and communities.
Low unemployment rates, on the other hand, are usually good for the economy. They mean that the economy is operating near full capacity, maximizing output and driving wages up over time. They can also cause inflation as employers raise prices to account for higher labor costs. And they can lead to tight labor markets that make it harder for businesses to find workers.