Unemployment is usually a lagging indicator because once people start to lose their jobs, the economy has already started declining. That's because the last thing employers want to do is let people go. Unemployment will also continue to rise even after the economy has started to improve. That's because employers wait until they are very sure the economy has recovered before they start hiring again.
Another lagging indicator is the the Consumer Confidence Index. That's because most people don’t really feel that the economy has changed until after it actually has. People base their feelings about the economy on how easy it is to find jobs. Usually, it doesn’t become difficult to find jobs until after the economy has turned. That’s because unemployment is a lagging indicator.
