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Unemployment - Definition
Below, you'll find a definition of this investing term...

Definition: A carefully-watched economic indicator representing the percent of the labor force that's actively seeking employment.

TeenAnalyst Advice: The unemployment rate is a sign of how the economy has been doing.  But it's a lagging indicator, meaning it only confirms what's been going on.  It can't predict the future.

Historically, the unemployment rate has varied between 2-10%.  Its historical average is around 5% (which is called "full employment").

 

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