Term: U-6 Unemployment Rate
Type: Economic indicator
Used in: U.S. labor market analysis
Published by: Bureau of Labor Statistics (BLS)
Also Called: Real unemployment rate, underemployment rate

Definition

The U-6 rate is the broadest official measure of unemployment in the U.S. It includes not just the unemployed, but also the underemployed and discouraged workers who’ve stopped actively looking for work.

While the standard U-3 rate only counts people actively seeking jobs, U-6 gives a fuller picture of labor market weakness by adding part-time workers who want full-time jobs and those marginally attached to the workforce.

Key Features

• Includes:
  • Unemployed (U-3)
  • Discouraged workers (stopped looking)
  • Marginally attached workers (available but not seeking)
  • Part-time for economic reasons
• Reported monthly by the U.S. Bureau of Labor Statistics
• Typically higher than U-3 by several percentage points
• Reflects broader economic distress
• Key for: Policymakers, economists, and analysts

Common Use Cases

• Measuring true labor market health
• Economic commentary and media reporting
• Policy evaluation during recessions
• Analyzing inequality and workforce participation
• Comparing labor slack over time

Benefits or Advantages

• More realistic than headline unemployment (U-3)
• Includes underutilized labor
• Tracks labor market fragility
• Valuable during economic downturns and recovery

Examples or Notable Applications

During the 2020 COVID crisis, U-6 soared above 20%. U-3 may show recovery while U-6 reveals ongoing struggles. Used in Fed policy discussions and economic research. Labor force participation often discussed alongside U-6.

External Links

• BLS: Alternative Measures of Labor Underutilization
• Investopedia: U-6 Unemployment Rate
• Federal Reserve: Labor Market Data

This post is for educational purposes only and does not represent official labor statistics or forecasts.