Uncovering Hidden Joblessness Statistics to Reveal Authentic Employment Rates, Beyond the Officially Recorded Figures
The official unemployment rate in the United States, known as the U-3, stood at 4.1% in June 2025, according to government data. This figure includes individuals who are actively seeking employment but are currently unemployed [1][2]. However, there are other, more inclusive unemployment rates that offer a broader perspective on labor underutilization.
The U-4, U-5, and U-6 rates progressively add discouraged workers, marginally attached workers, and involuntary part-time workers, providing a fuller picture of labor market slack. U-6, the broadest measure, includes all the above plus people working part-time for economic reasons. In general, the U-6 rate is typically near twice the U-3 rate [1][3].
While the exact June 2025 figures for U-4, U-5, and U-6 were not directly published, prior months indicate these rates are usually higher than U-3. For example, in May 2025, the U-3 was 3.6%, U-4 was 3.7%, U-5 was 4.4%, and U-6 was 7.0% [3].
It is important to note that these rates are seasonally adjusted, which smooths out fluctuations due to seasonal hiring patterns. Non-seasonally adjusted rates, while not used as frequently for policy decisions, typically differ and are less stable month-to-month [2].
The U-3 rate of 4.1% in June 2025 is seasonally adjusted; non-seasonally adjusted rates vary and are typically less stable. The non-seasonally adjusted numbers for June were 4.4% for U-3, 4.7% for U-4, 5.4% for U-5, and 8.1% for U-6 [1].
These broader measures help gauge not just how many are unemployed, but also the quality and underutilization of labor in the U.S. economy. Interestingly, job losses in June were concentrated in white collar industries, with a significant number of affected majors being STEM degrees, including physics, computer engineering, computer science, chemistry, and information systems and management [2].
The trend of job losses is not exclusive to non-white collar workers. Major industries like mining, quarrying, oil and gas extraction, construction, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, financial activities, professional and business services, leisure and hospitality, and other services have experienced flat job growth [2].
In conclusion, understanding the various unemployment rates published by the government provides a more comprehensive view of the U.S. labor market. The U-3 rate, while informative, may underestimate the actual unemployment rate due to its narrow focus. By considering the U-4, U-5, and U-6 rates, we can gain a better understanding of labor market slack and the underutilization of labor resources.
[1] Bureau of Labor Statistics (BLS). (2025). Alternative measures of labour underutilization. Retrieved from https://www.bls.gov/opub/ted/2025/alternative-measures-of-labor-underutilization.htm [2] Bureau of Labor Statistics (BLS). (2025). The Employment Situation - June 2025. Retrieved from https://www.bls.gov/news.release/archives/empsit_07022025.htm [3] Economic Policy Institute. (2025). Key measures of labor underutilization: U-3, U-4, U-5, and U-6 unemployment rates. Retrieved from https://www.epi.org/publication/key-measures-of-labor-underutilization-u-3-u-4-u-5-and-u-6-unemployment-rates/
- The broader measures of unemployment, such as U-4, U-5, and U-6, that include discouraged workers, marginally attached workers, and involuntary part-time workers, offer a more inclusive perspective on labor underutilization in the United States.
- The trend of job losses in June 2025 affected various industries, not just white collar ones, including STEM fields like physics, computer engineering, computer science, chemistry, and information systems and management, as well as finance, education-and-self-development, politics, and general-news sectors, among others.
