Long Term Perspective
The civilian unemployment rate reflects the degree of tightness in the labor market. The unemployment rate generally associated with "full employment" -- the level that causes wage pressures to begin percolating -- is about 5 percent. The question of the "full employment rate" is debated widely among academics and policymakers. It wasn't until late 2000 that Fed chairman Alan Greenspan admitted to the lower unemployment rate as full employment - until recently, most policymakers still felt it was closer to 5 ½ percent.

Short Term Perspective
The civilian unemployment rate increased 0.3 percentage points to 5.7 percent in November. Average hourly earnings rose 3.9 percent during the month, the smallest gain since January. Most economists expect that a mild recession will lift the unemployment rate near 6 percent in coming months.

Alternative Inflation Measures   •   Gold Prices   •   Employment Cost Index   •   Civilian Unemployment Rate

Pool of Available Labor   •   Nonfarm Productivity   •   Treasury Yields   •   Stock Prices   •   Fed Monetary Policy Summary