Unemployment Rate

Highlights

September unemployment rate slipped to 4.1 percent from 4.3 percent in August as the number of employed increased from the previous month. The unemployment rate is the lowest since November 2008 when it was 4.0 percent. Effective with September data, the government released the national average unemployment rate based on figures from all the 47 prefectures, including earthquake hit areas that were previously excluded from the data. The adjusted number of unemployed was down by 30,000 to 2.67 million for the second consecutive monthly drop. The unadjusted number of employed people fell by 330,000 to 62.76 million on the year.

Actual   Consensus    Previous

 4.1%          4.5%     4.3%

Released on 10/27/2011 23:30 for Sep, 2011

Definition

The unemployment rate measures the number of unemployed as a percentage of the labor force. *Release time listed is for U.S. Eastern Time of the previous day.

Why this is important

The unemployment rate and employment change are carefully monitored. The employment data show the number employment along with the change in employment for the previous year. Monthly changes in employment also help clarify whether businesses are hiring. The unemployment rate is the percentage of the labor force that is unemployed. A lower jobless rate translates into more income earning workers and greater consumption. Increased spending is a positive for consumer oriented economic growth, something that has lagged in Japan.

By tracking the jobs data, investors can sense the degree of tightness in the job market. If wage inflation threatens, its a good bet that interest rates will rise; bond and stock prices will fall. No doubt that the only investors in a good mood will be the ones who watched the employment report and adjusted their portfolios to anticipate these events.

Frequency

Monthly

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