What is the U3 unemployment rate?
The official unemployment rate (U-3) reached a peak of 14.8% in April 2020. 6 The real unemployment rate, including discouraged, marginally attached, and part-time, was 22.9%. 7 This may give a better sense of how the labor force fared in 2020.
What was the unemployment rate during the 2008 financial crisis?
In December 2007, the national unemployment rate was 5.0 percent, and it had been at or below that rate for the previous 30 months. At the end of the recession, in June 2009, it was 9.5 percent. In the months after the recession, the unemployment rate peaked at 10.0 percent (in October 2009).
What was the rate and trend in unemployment in 2008?
U.S. Unemployment Rates by Year
| Year | Unemployment Rate (December) | Notable Events |
|---|---|---|
| 2006 | 4.4% | Expansion |
| 2007 | 5.0% | |
| 2008 | 7.3% | Min. wage $6.55; Financial crisis |
| 2009 | 9.9% | ARRA; Min. wage $7.25; Jobless benefits extended |
What is the U-3?
The most commonly reported form of unemployment is the U-3 rate, which accounts for unemployed people who are actively seeking a job. The U-6 rate is often considered the true rate of employment, however, as it accounts for those who are unemployed, underemployed, and discouraged workers.
How is u3 calculated?
To calculate the U-3 unemployment rate, the number of unemployed people is divided by the number of people in the labor force, which consists of all employed and unemployed people. The ratio is expressed as a percentage.
What caused unemployment in 2008?
The collapse of the housing bubble in 2007 and 2008 caused a deep recession, which sent the unemployment rate to 10.0% in Oct. There is an argument to be made, however, that the Great Recession caused an increase in structural unemployment.
How did the 2008 recession cause unemployment?
A recession is a period of economic contraction, where businesses see less demand and begin to lose money. To cut costs and stem losses, companies begin laying off workers, generating higher levels of unemployment.
What is the difference between the u3 and u6 unemployment rates?
What was the highest unemployment rate in 2008?
8.4 percent
In 2008, Michigan reported the highest unemployment rate at 8.4 percent. Rhode Island (7.8 percent) and California (7.2 percent) had the next highest rates in 2008. The annual average U.S. jobless rate was 5.8 percent in 2008.
How is U-3 calculated?
What was the unemployment rate in December 2008?
Unemployment in December 2008. January 13, 2009. In December, the number of unemployed persons increased by 632,000 to 11.1 million and the unemployment rate rose to 7.2 percent. Since the start of the recession in December 2007, the number of unemployed persons has grown by 3.6 million, and the unemployment rate has risen by 2.3 percentage points.
What was the U-3 unemployment rate in 2010?
Adjusted U-3 ended 2010 at 9.4% and 2020 at 6.7%. See: Current Unemployment Rate Chart below. “ Nonfarm payroll employment rose by 210,000 in November, and the unemployment rate fell by 0.4 percentage point to 4.2 percent.
What is the U-4 and U-5 unemployment rate?
U-4 Total unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers U-5 Total unemployed, plus discouraged workers, plus all other persons marginally attached to the labor force, as a percent of the civilian labor force plus all persons marginally attached to the labor force
What is the difference between U2 and U3 unemployment?
U-2 Job losers and persons who completed temporary jobs, as a percent of the civilian labor force U-3 Total unemployed, as a percent of the civilian labor force (official unemployment rate) U-4 Total unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers