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What Is the Unemployment Rate?

The unemployment rate is an economic indicator showing the share of the labor force that is completely unemployed, published monthly in Japan by the Ministry of Internal Affairs and Communications.

What the Indicator Shows

The unemployment rate is a representative indicator of labor market supply and demand and is generally regarded as a lagging indicator of the economy (one that changes after the economy moves). The job openings-to-applicants ratio, published alongside it, is also a commonly referenced indicator for gauging employment conditions.

How to Read It, and What to Watch Out For

A decline or rise in the unemployment rate is a fact reflecting improving or worsening employment conditions, but the figure alone cannot predict the future direction of the economy or stock prices. It is useful to check it together with other economic indicators and corporate earnings trends.

This article is provided for general informational purposes only and does not recommend or solicit the purchase or sale of any specific investment method or security. Final investment decisions are your own responsibility.

Frequently Asked Questions

What does the complete unemployment rate measure?
It measures the share of the labor force (employed persons plus the completely unemployed) made up of people who want to work and are able to work but do not have a job (the completely unemployed).
Who publishes the unemployment rate?
In Japan, the Ministry of Internal Affairs and Communications publishes it monthly as part of the Labour Force Survey.

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