Unemployed US Citizens
Unemployment Rate (US)
Unemployment Rate to Fall to 10.5% in July
Starts Friday, August 7, 2020 at 12:30
Updated Friday, August 7, 2020
The US unemployment rate has been declining steadily during the last few years. Although in December last year and in January this year it increased to 4.0%. But, last month we saw a 2-point decline to 3.8%, beating expectations of 3.9%. Earnings also beat estimates and grew by 0.4% in February. In March, the unemployment rate remained unchanged at 3.8% but we saw a decline of two points in April, which took this indicator to 3.6%, although we saw a tick higher to 3.7% in June where it remained in July and August. In September we saw a surprise two-point decline to 3.5%, but the unemployment rate was expected to tick higher to 3.6%, which it did. Earnings, on the other hand, have increased from around 0.1%-0.2% at the beginning of the year, to 0.3% in the last few months, where it was expected to stay for September as well, but earnings fell flat that month at 0.0%. Earnings grew by 0.2% in October, which was revised to 0.4% last month. Employment umped higher as well, by 266k new jobs, while the unemployment rate ticked down to 3.5% again, so November's report was quite positive. But in January, unemployment ticked higher to 3.6%, but ticked back down in February. In March, unemployment claims increased to 4.4%, but surged to 14.7% in April, as the lock-down became more severe. For May, unemployment was expected to increase further to 19.5% but cooled off to 13.3% and and it did so again to 11.1% in June. For July, the rate is expected at 10.5%. Please follow us for live coverage of the US unemployment report by experienced analysts.
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About Unemployment Rate (US)
The U.S. Unemployment Rate is calculated and released by the U.S. Department of Labor. It is a statistic that measures the ongoing levels of unemployed individuals in the domestic workforce. Unemployment rates are derived by dividing the number of unemployed workers by the entire non-military labor pool. It is intended to measure the percentage of people willing to work and actively seeking jobs.As a general rule, high unemployment rates are found in recessionary economic cycles while low rates are common in periods of growth. Monetary policy decisions take into account the Unemployment Rate as a leading metric of economic performance. Low unemployment leads to inflation and a tightening of monetary policy, while higher rates are seen as a precursor to prolonged deflation.Traders look upon the release of U.S. Unemployment as an important metric facing the U.S. economy. Abnormal levels are viewed as being likely catalysts for policy change, with U.S. indices and USD being highly sensitive to its release.