Definition
The share of working-age people who either have a job or are looking for one.
The story
Picture a town of 100 adults. Sixty-two are working or job hunting; 38 are retired, in school, caring for family or have given up looking. The participation rate is 62%. If some of those 38 start looking again, the unemployment rate can rise even while more people find jobs.
Why markets watch it
It explains whether a change in unemployment is about jobs or about who's looking.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms