4. Unemployment (Macroeconomics)

[mgroupfx]

Most important ingredients of a healthy economy is availability of well paid jobs

When a person is actively searching for employment but is unable to find work unemployment occurs

Unemployment is basically the percentage of people in the work force without jobs but are able and willing to work

Non-farm payroll measures employment through the number of additional non farming jobs that are added each month

An increase in unemployment signal a slowdown in the economy

As unemployment increase consumer spending falls because because jobless workers have less money to spend and those employed reduce spending

 

[Fin_Trader]

Yes, it is necessary to follow the publication of such important news. They can provide strong volatility in the market and unpredictable and sharp price movement in any direction. Therefore, it is better not to trade at this time.

 

[pippin]

Changes in the unemployment rate can significantly impact currency prices in the forex market. A higher unemployment rate often signals a weakening economy, which may lead to lower consumer spending and slower growth, putting downward pressure on a country's currency. Conversely, a lower unemployment rate generally reflects economic strength, which can attract foreign investment and boost the currency's value. Central banks also consider unemployment rates when making monetary policy decisions, which further influences market prices.