Unemployment Rate
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The percentage of the labor force that is actively seeking employment but unable to find work, a key economic indicator of labor market health.
## Unemployment Rate
The unemployment rate measures the share of the labor force that is jobless and actively looking for work. It is the most widely tracked labor market indicator.
### Calculation
```
Unemployment Rate = (Unemployed ÷ Labor Force) × 100
```
The labor force includes employed + unemployed (seeking work). It excludes retirees, students, stay-at-home parents, and discouraged workers.
### Types
| Type | Description |
|------|-------------|
| U-3 | Official rate (actively seeking work) |
| U-6 | Broader measure (includes underemployed, marginally attached) |
| Youth | Ages 15–24 (often 2–3× adult rate) |
| Long-term | Unemployed 27+ weeks |
### Impact on Salaries
Low unemployment (< 4%) gives workers leverage for higher wages. High unemployment (> 8%) favors employers and can suppress wage growth. The relationship between unemployment and wages is described by the Phillips Curve.