U.S. unemployment rate in the “green zone”

The unemployment rate has gone up according to data released Friday, but that’s not necessarily bad news.

According to the U.S. Department of Labor, the unemployment rate currently stands at about five percent. This figure is up from  4.9 percent, which was initially reported in their February report.

Dr. Tylor Claggett, a professor of finance at Salisbury University, says the “green-zone” for unemployment is generally between four and six percent; therefore, the current rate is right within that.

According to Dr. Claggett, anything above six percent means there are too many people who are jobless. He also notes there are dangers with having an unemployment rate that’s too small.

“If you get a number less than four percent, then that means the labor market is too tight.” Explains Dr. Claggett. “Tthe danger there is that could cause an inflationary environment.”

With the unemployment rate, the report also showed a strong boost in the economy in March with the addition of 215,000 jobs.