Unemployment rate drops to 8.3 percent
Today's employment situation report from the Bureau of Labor Statistics shows total unemployment in January declined to 8.3 percent.
This chart compares the traditional unemployment rate (U3) with the total unemployment rate (U6) that includes marginally attached workers.
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罢辞诲补测鈥檚 showed that in January 鈥渢otal unemployment鈥� including all marginally attached workers declined to 15.1% from the prior month's level of 15.2% while the traditionally reported unemployment rate also declined to 8.3%.
The traditional unemployment rate is calculated from the monthly household survey results using a fairly explicit definition of 鈥渦nemployed鈥� (essentially unemployed and currently looking for full time employment) leaving many workers to be considered effectively 鈥渙n the margin鈥� either employed in part time work when full time is preferred or simply unemployed and no longer looking for work.
The Bureau of Labor Statistics considers 鈥渕arginally attached鈥� workers (including discouraged workers) and persons who have settled for part time employment to be 鈥渦nderutilized鈥� labor.
The broadest view of unemployment would include both traditionally unemployed workers and all other underutilized workers.
To calculate the 鈥渢otal鈥� rate of unemployment we would simply use this larger group rather than the smaller and more restrictive 鈥渦nemployed鈥� group used in the traditional unemployment rate calculation.