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Economy
Term 991 of 1038
1 min readTwo voicesEconomy

U-6 Unemployment.

A broader unemployment rate that adds discouraged workers and involuntary part-timers to the official count, so it runs higher than the headline rate.
Verified July 2026 · Source: Bureau of Labor Statistics
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U-6 Unemployment
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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.

Most useful ages
25 to 70

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

Do not confuse with The headline unemployment rate

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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Plain-English answers from our glossary. Receipts included. Never advice.

Educational tool. Answers come only from ClearMoneySchool's published glossary and are not advice. Why we never give advice

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Last reviewed July 12, 2026 · Reviewer Joseph Citizen, Founder