U6

U-6 is a statistic used in the United States to measure labor underutilization more broadly than the official unemployment rate. Published by the Bureau of Labor Statistics (BLS), it is part of the U-1 through U-6 family of indicators and is commonly described as reflecting underemployment as well as unemployment. U-6 is typically higher than the official rate because it covers additional groups that are not captured by the headline unemployment figure.

The measure includes three groups: (1) the unemployed individuals counted in the official rate, (2) marginally attached workers—persons who want and would like to work and have looked for work in the recent past but are not currently counted as unemployed, and (3) part-time workers who would like to work full-time but are employed part-time for economic reasons. Collectively, these categories indicate broader slack in the labor market beyond those actively seeking and available for full-time work.

Calculation, in concept, involves combining these groups and relating them to a broader labor force. Numerator: unemployed (U-3) plus marginally attached workers plus those employed part-time for economic reasons. Denominator: the civilian labor force plus marginally attached workers. U-6 is then expressed as a percent of this denominator. The result is a measure of labor underutilization that can provide a more comprehensive view of labor market conditions, particularly during economic downturns or recoveries.

Interpretation and use: policymakers, researchers, and analysts use U-6 to assess overall labor market slack and to compare conditions over time or across countries. Limitations include its reliance on survey classifications and definitions of marginal attachment, which can change and influence the level of the indicator. It is not a direct measure of income, job quality, or full-time employment adequacy.