Employment & Economic Health

Learn why low unemployment is a sign of a strong economy, but also how it can signal future inflation.

A diverse group of professionals in a meeting.

Employment data, such as the unemployment rate and job creation numbers, are a direct pulse check on the economy. Low unemployment signifies a strong economy where businesses are hiring and consumers are confident. However, a very tight labor market can lead to wage growth that outpaces productivity, which can in turn fuel inflation, creating a complex challenge for policymakers.