When talking about unemployment in this country, you may hear the terms U-3 and U-6 thrown around. And while you might remember what U-3 is (your basic unemployment rate as reported by the Bureau of Labor Statistics), I’ll bet that U-6 sent a few of you back to your first-year economics books. After all, though you may have casually considered the strategic impact of the best known and reported unemployment rate (U-3) on your future staffing needs, you can be excused if you’re not geeky enough to know or care about the seldom discussed U-6 measurement.
What is the U-6 rate?
The U-6 rate is a much broader measure than U-3 and is defined by the following three characteristics: