Forex Glossary

Find definitions for key Forex trading terms along with introductions to the concepts, people and entities that impact the Forex market
Unemployment Rate
The percent of the labor force that is currently out of a job.

Those who are able and willing and legal to work but can not get a job are considered unemployed. The Bureau of Labor Statistics releases this and other employment data monthly.

There are basically three main types of unemployment that is considered natural:

Frictional: Displacement from a job when one is moving to another job.

Structural: Unemployment due to mismatching of location or skill type. Also, when a company is restructuring it may decide to cut cost by reducing staff size causing structural unemployment.

Cyclical: Unemployment caused by the business cycle. At lows in the economy, aggregate demand for labor is decreased causing firms to shed jobs and hire less.

Unemployment rate beyond a natural or accepted level indicates a slowdown or even decline in the economy. This non-accelerating inflation rate of unemployment (NAIRU) is one, where price-setting and wage-setting behavior is stable. It is arguable and has ranged from 4% to 7% historically,  although currently, economists in the United States tend to agree on the range of 5% to 6%.

Forex Trading Terms (Alphabetical)