Labour market statistics. Perhaps the most useful lagging indicator is unemployment rate. If the unemployment rate increases month-on-month over a period of time, it tends to indicate that the overall economy has been declining in health. If employment rates fall, it means that businesses have finally given up hope that the situation will improve and have started to lay off their workers. Even once the economy is considered to be back on track, unemployment rates might not decline, because employers will always wait until they are sure the economy is growing before starting to employ new workers.
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