Definition – What does Unemployment Report mean?
The unemployment report is a basic economic release that states a countries unemployment rate in the last time period and its change from previous periods. Unemployment reports can be given monthly or quarterly, depending on the reporting schedule the government has committed to. Unemployment reports are carefully followed by forex traders because the unemployment rate is an indicator of a nation’s economic health.
ForexTerms explains Unemployment Report
Generally speaking, if a country has a high or rising unemployment rate, it is bad news for the currency. Therefore, the reporting of unemployment numbers becomes a tradable event for currency traders. If the numbers are negative or weak, traders may short the affected currency. If the numbers are strong or improving, traders may take up a long position. Unemployment reports are often seen as a lagging indicator because employment is the last thing to improve in an economic recovery.