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Another important measure of how an economy is performing is the unemployment rate, but there is more to the unemployment rate than just the headline rate reported on the news.
In particular, we are going to look at the U3 rate (the Headline rate), the U6 rate, and the labor force participation rate.
Go to the Bureau of Labor Statistics.
On their home page, from the menu on the top of the page, click on “Economic Releases,” choose “Latest Releases,” click on “Employment Situation,” and then on “Employment Situation Summary.” Read the report. Then using the tables linked from the bottom of the report, find:
the U3 rate;
the U6 rate; and,
the labor force participation rate.
What are the differences among these measures? Note the percentages of each, what each measure includes, and then express your views on what factors may be causing the U6 rate to be roughly twice the U3 rate and what may be causing the decline in the labor participation rate. Is the headline rate used by most news reports misleading?
