Is there a relationship between the employment of the population and the Forex foreign exchange market? According to experts – yes, moreover, noticeable. If we consider 2009-2010, we can conclude that sometimes the unemployment rate in the country can play a more significant role than any bills. So, on the example of the United States of America, one can trace how the decrease in unemployment to activate the work of the world currency exchange has affected the level of unemployment. In these years, as you know, the process of restoring the economy after the 2008 crisis began. In difficult times, the level of consumption always falls. Someone lost his job and cannot afford any excesses. And someone just strives to live economically, because it is not known what will happen tomorrow.
It is clear that in this way employment affects consumption in the country. But, what does the world currency exchange of Forex have to do with it? And she has the most direct attitude. Again, we will look at the example of the USA. In this country, the analysis of employment information is very well delivered. And for this there are several special economic indicators. For example, an indicator called “Employment level”. It is determined by polling sixty thousand Americans about whether they have work. In the event that they say that they have their own business or they have a job, then they are classified as employed. And, if a person does not have a job, then the number of unemployed. In this way, even the work of recruitment agencies is analyzed. And there are a lot of such indicators. In practice, all the necessary fresh information about the level of employment in the country is published every first Friday of the month.
And the currency trader must take into account all these indicators. After all, even the possibility of changing the exchange rate can be determined by them. For example, consider such an indicator as average hourly wages. In the event that the proposal in the economy is just covering demand, qualified personnel begins to lack production at the enterprise. Everyone who works at the enterprise is very expensive (even if it is a bad worker, he is still littered with offers from the employer). So that the workers do not leave, they begin to raise the average hourly wage. Moreover, in some cases, the growth of wages can even overtake an increase in labor productivity. At the same time, workers, having decent money in their hands, begin to actively spend it on goods, which are disastrous begin to miss. And then the money begins to gradually depreciate, and inflation goes to the stage. And when inflation begins to grow, an increase in currency rates is expected from the centerbank, which, of course, is reflected in the currency market. That is why a self -respecting Forex market trader every first on Friday the month must definitely view information about employment in the economies of the countries of the world.
