The typical headline unemployment numbers the American news media reports (U3) are inadequate for measuring not just unemployment, but underemployment. Many part time employees would prefer full time employment. The U6 unemployment number you see above includes more of the employees left out by the headline number; those who are marginally attached to the workforce, and those who are employed part time for economic reasons. The effect of the expanded definition is a fuller understanding of how many Americans aren’t working as much as they would like to.
The U6 rate is an important component to the RAGE Gauge, because as unemployment and underemployment spike, risk increases dramatically for Americans, and even for the economy as a whole.
Latest posts by E.J. Smith (see all)
- Are You Fully Invested? - July 19, 2019
- Part II: The IRS is Coming for Your IRA - July 18, 2019
- Beat the IRS: Roth IRAs for Your Kids and Grandkids - July 17, 2019