US Unemployment Rate — Historical Chart
UNRATEThe official U-3 unemployment rate. Below 4% signals a tight labor market that pressures wages and stokes inflation. The Fed monitors this against its maximum employment mandate alongside inflation.
Related — Employment & Labor Markets
SOURCE: FEDERAL RESERVE ECONOMIC DATA (FRED) · 0 OBSERVATIONS
The unemployment rate measures the percentage of the labor force that is jobless and actively seeking work. It is one of the Federal Reserve's two mandate targets alongside price stability, and is the most closely watched measure of labor market health — a key input to Fed rate decisions.
Related Economic Indicators
Frequently Asked Questions
- How is the unemployment rate calculated?
- The Bureau of Labor Statistics (BLS) calculates the unemployment rate by dividing the number of unemployed persons by the total labor force (employed + unemployed). It is based on a monthly household survey of ~60,000 households.
- What is "full employment"?
- Full employment is typically defined as 4–5% unemployment — low enough that most people who want work can find it. The Fed considers full employment one of its two mandates. Very low unemployment (below 3.5%) can signal wage inflation risks.
- What is the difference between U-3 and U-6 unemployment?
- U-3 is the headline unemployment rate — officially unemployed workers seeking jobs. U-6 is the broader measure that also includes part-time workers who want full-time work and "marginally attached" workers. U-6 is typically 1.5–2x the U-3 rate.
- How does unemployment affect the stock market?
- The relationship is complex: rising unemployment can hurt consumer spending and earnings, but the Fed typically cuts rates in response, which supports asset prices. Markets often rally on bad employment data if it increases rate cut expectations.
Economic data sourced from the Federal Reserve Bank of St. Louis (FRED). Data is updated according to the release schedule of the issuing agency. Provided for informational purposes only and does not constitute investment advice.