U-6 Unemployment.
In plain English
U-6 is the widest of the government's unemployment measures. On top of the officially unemployed, it counts discouraged workers, others who want a job but are not actively looking, and people working part-time who want full-time work. Because it captures this hidden slack, U-6 is always higher than the headline U-3 rate, and the gap between them hints at how much weakness the main number is missing. Analysts watch it to judge the real health of the job market.
01Why it matters
U-6 shows the underemployment the headline rate hides, so it is a better gauge of whether the job market is truly strong or just looks that way.
02The math, step by step
The headline unemployment rate is 4 percent, but U-6 is 7.5 percent. The gap reflects part-timers who want full-time work and people who have given up looking.
03What this is NOT
U-6 is NOT the headline rate. The headline rate (U-3) counts only active job seekers; U-6 adds discouraged workers and involuntary part-timers, so it is always higher.
04Receipts
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