The U.S. unemployment rate represents the percentage of the total workforce, between the working ages of 15 and 64, who are unemployed but actively seeking work within a specified period (monthly or yearly, usually). It is calculated by dividing the number of unemployed individuals by the number of individuals currently working. This is a closely watched measure for governments around the world, because it is a key gauge of how economies are performing.
A very low U.S. unemployment rate signals a strong economy and is used as a barometer for wage inflation and capacity utilization. A very high U.S. unemployment rate is a sign of a weak economy, including slacking capacity and falling wages.
When it comes to the stock market, September is supposed to be the cruelest month. However, it might be hard-pressed to beat this past August. After starting the month on a record-high note, the S&P 500 closed out August down roughly four percent, recording its steepest drop since May 2012. Whether it had to do with uncertainties in Syria, the long weekend, threats of tapering quantitative easing, or weak consumer spending numbers is anyone’s guess. Will tomorrow’s U.S. unemployment rate figures ... Read More