Guide Note:

The unemployment rate in the United States is calculated by dividing the number of unemployed workers by the total civilian labor force. Unemployment data is gathered by Bureau of Labor Statistics. A significant economic parameter, some economist viewed the hike in the unemployment rate in December 2007 as an indicator that a recession was looming.¹

Fast Facts:

1. Frictional unemployment is when a worker moves from one job to another
2. Increases in frictional unemployment is a good sign of the economy
3. Classical unemployment occurs when the wages are set above the market
4. Keynesian unemployment occurs when the economy experiences a business cycle recession and demand for labor decreases
5. Highest period of unemployment since 1948 was 9.7% in 1982²
6. Lowest period of unemployment since 1948 was 2.9% in 1953²
7. 2007: U.S. city with the lowest unemployment rate: Fargo, North Dakota³
8. 2007: U.S. city with the highest unemployment rate: McAllen-Edinburg-Mission, Texas³

• The Unemployment Rate = Unemployed Workers / Total Labor Force * 100%