The unemployment rate fluctuates as a result of seasonal variations, technological changes, government policies, global economic conditions, and sometimes education and skills mismatches. Essentially, changes in the overall demand for labor, along with shifts in the supply and composition of the workforce, influence the unemployment rate. The Federal Reserve can influence the unemployment rate by keeping interest rates low as we've seen in recent time. Lower interest rates stimulate economic activity by encouraging borrowing and spending, leading to a potentially increased demand for goods and services and, consequently, job creation which in turn affects the unemployment rate positively