U-6 is 11.1%, it adds in "marginally attached" (discouraged workers & would take a job if it came along) and involuntary part-time.
I've gotten questions about whether to emphasize U-6 as the "true unemployment rate". It is currently 11.1%.
I don't because I think the concept doesn't add much, it misses how unusually bad the labor market is now, is analytically flawed, and can be misleading.
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U-6 is 11.1%, it adds in "marginally attached" (discouraged workers & would take a job if it came along) and involuntary part-time.
Also shift based on convenience (e.g., Trump shifted from Obama economy bad using U-6 to his good with U-3).
Jay Powell cited an unemployment rate of 10% adjusted for participation. Willie Powell & I have been using 8.3% as the "realistic unemployment rate". Both are correct, both are useful, I won't be offended if you use his instead of mind, but a technical note on the differences.
— Jason Furman (@jasonfurman) February 10, 2021