Unemployment Rate

Unemployment Rate
It is generally the percentage of individuals without any jobs but has the will to get into jobs. This is calculated by getting a ratio of jobless people who have awill to get employed and people who are already employed. It is vital to distinguish unemployed people with those are just not working. Some individuals may be working from home, studying, retired or handicapped. These people cannot be regarded as a part of the group consisting of working people.
Significance: the rate of employment is regarded as lagging indicator. This signifies that it changes after the financialconditions of the country undergo changes. The rate of employment could result in market volatility as it offers the traders clues about the rate of interest and monetary policies.
Impact On the market: Lesser than the expected rates of unemployment incline to appreciate money as the traders think that it can give rise to a high rate of interest. On the contrary, the greater than the expected rates of unemployment could deteriorate the finances as many think that itleads to a low rate of interest.