ILO Unemployment Rate refers to the percentage of economically active people who are unemployed by ILO standard. Under the ILO approach, those who are considered as unemployed are either 1) Out of work but are actively looking for a job or 2) Out of work and are waiting to start a new job in the next two weeks. ILO Unemployment Rate is measured by a monthly survey, which is called the Labour Force Survey in United Kingdom. Approximately 40,000 individuals are interviewed each month, and the unemployment figure reported is the average data for the previous three months.
Oct 15, 2019
Why Traders Care
Although unemployment rate is commonly used as a lagging indicator, it it nevertheless an important signal of overall economic health. This is because consumer spending is highly correlated with labor conditions. When unemployment rate is high, consumer spending will decrease, and that means slugglish economic growth and lesser corporate profits