The unemployment rate is the percentage of the labor force actively seeking work but unable to find it. Calculated monthly by the Bureau of Labor Statistics. The 'official' U-3 rate is the most cited; broader U-6 includes discouraged workers and part-time-for-economic-reasons. Healthy US unemployment: 4-5%; recessions push above 7-10%; the COVID spike reached 14.7% (April 2020). The labor force participation rate (% of working-age population working or looking) provides important context — low unemployment with low participation indicates discouraged workers leaving labor force. Federal Reserve targets maximum employment (without specifying a number) per its dual mandate.
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Unemployment Rate
August 22, 2026 · Aditya Gupta
Finance
Related terms
Bond Market
The bond market is the global market for debt securities — US Treasuries, corporate bonds, municipal bonds, mortgage-backed…
Bubble
An asset bubble is a sustained rise in asset prices well above fundamental value, driven by speculation rather…
Comparative Advantage
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