Unemployment rate may have some impact on the foreign exchange market

Unemployment rate (Unemployment Rate) is also another project in the U.S. employment report, referring to the labor force figures of people who are willing to work but still being unemployed of total employed population  in a certain period. The data together with the non-farm employment is released by the U.S. Department of Labor announcements usually on the first Friday of each month.

Unemployment rate is derived by household surveys.Each month Labor Bureau of Investigation are investigating 50 000 households to calculate the total labor force and unemployment.Only people who meet two conditions are considered unemployed : First of all, you do not work; Secondly, you are actively looking for work.  The total labor force divided by the number of unemployed equals the unemployment rate. But the civilian unemployment rate people often focus on does not include military personnel, because, by definition, all soldiers are holding the work, including the military’s unemployment rate would lower the unemployment rate data. Therefore, the civilian unemployment rate changes is more sensitive on economic activity. Since the target leads to great social concern, it also attaches great importance to politicians. Once the unemployment rate rises, members of Congress will exert pressure on the Fed to loosen its monetary policy. What needs to note is that unemployment is a lagging economic data, because most enterprises change the staff’s working hours or remuneration before increase employment or dismiss employees.