<p>There are six types of unemployment rates in the US (U1-U6). U6 provides the broadest measure of unemployment, taking into account not only the unemployed labour market participants who are actively seeking for jobs, but also the marginally affected, the discouraged, as well as the part-time workers who would like to have a full-time job (i.e. "underemployed" workers). This broad measure is deemed by numerous economists to be the "true" unemployment rate. However, what is usually popularised in the news media is in fact, the U3 unemployment rate, which only takes into account those unemployed that are actively seeking for jobs. What is the reason for the U3 rate being the more popularised and widely emphasised measure of unemployment in the United States and also for other developed economies? </p>

<macroeconomics><statistics><unemployment>
Choice of measure for unemployment
Tan Yong Boon
# Choice of measure for unemployment

(Asked by: username_0 on 2020-05-17)

There are six types of unemployment rates in the US (U1-U6). U6 provides the broadest measure of unemployment, taking into account not only the unemployed labour market participants who are actively seeking for jobs, but also the marginally affected, the discouraged, as well as the part-time workers who would like to have a full-time job (i.e. "underemployed" workers). This broad measure is deemed by numerous economists to be the "true" unemployment rate. However, what is usually popularised in the news media is in fact, the U3 unemployment rate, which only takes into account those unemployed that are actively seeking for jobs. What is the reason for the U3 rate being the more popularised and widely emphasised measure of unemployment in the United States and also for other developed economies?

**Tags:** macroeconomics, statistics, unemployment

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## 0 answers

