The unemployment rate is a mean reverting indicator offering moments of oversold and overbought conditions.
The variance between the maximum and minimum rates of a given year, may indicate the stability of the unemployment rate.
Understanding the tendencies of the U-3 rate, may offer some clues toward future direction of the labor market.
In recent months, a growing debate has appeared asking if the U.S. unemployment rate (U-3, the official unemployment rate) is indicating the economy has reached or nearing full employment.
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Copyright ©2017. Contact Mark Shore for permission for republication at [email protected] Mark Shore has more than 25 years of experience in the futures markets and managed futures, publishes research, consults on alternative investments and conducts educational workshops. www.shorecapmgmt.com
Mark Shore is also an Adjunct Professor at DePaul University’s Kellstadt Graduate School of Business, where he teaches the only known accredited managed futures course in the country. He is also a Board Member of the Arditti Center for Risk Management at DePaul University.
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