What does the unemployment rate in the labor market typically indicate?

The unemployment rate in the labor market shows the percentage of people who are looking for jobs but cannot find one. A high unemployment rate usually means that many people are struggling to get work, which can indicate problems in the economy, like a recession. On the other hand, a low unemployment rate suggests that most people who want to work have jobs, which is a sign of a strong economy. For example, if a town has an unemployment rate of 10%, it means that out of every 100 people looking for a job, 10 cannot find one. This information helps governments and businesses understand the job market and make decisions about hiring and economic policies.