Unemployment rate shows the percentage ratio of the unemployed people to the total amount of the country’s employable population. Despite the slight importance at the first sight, this economic indicator can influence the market significantly.
Usage of this indicator is fairly simple and is based on a fact that the steadily developing country can’t have the systematic growth of the unemployment rate. For this reason, when the news about the growth of the unemployment rate is published, it is possible to conclude that a country has troubles with its economy. As a result, this inevitably affects the standing of the national currency. This indicator is especially important in regards to the US dollar.