People without jobs who have actively looked for work in the past 4 weeks.
Total number of people currently working (Full-time or Part-time).
Wanted work, available, and looked in last year, but not in the last 4 weeks.
People working part-time who want full-time work (Underemployed).
Calculation Results
function calculateU6Rate() {
var unemployed = parseFloat(document.getElementById('unemployed_count').value);
var employed = parseFloat(document.getElementById('employed_count').value);
var marginal = parseFloat(document.getElementById('marginally_attached').value);
var underemployed = parseFloat(document.getElementById('underemployed').value);
var resultBox = document.getElementById('u6-result-box');
if (isNaN(unemployed) || isNaN(employed) || isNaN(marginal) || isNaN(underemployed)) {
alert("Please enter numerical values for all fields.");
return;
}
// Calculations
var laborForce = unemployed + employed;
var u3Rate = (unemployed / laborForce) * 100;
// U6 Formula: (Unemployed + Marginally Attached + Part-Time for Economic Reasons) / (Labor Force + Marginally Attached)
var numerator = unemployed + marginal + underemployed;
var denominator = laborForce + marginal;
if (denominator === 0) {
alert("Total labor force cannot be zero.");
return;
}
var u6Rate = (numerator / denominator) * 100;
// Display
resultBox.style.display = "block";
document.getElementById('u3-output').innerHTML = "Standard Unemployment Rate (U3): " + u3Rate.toFixed(2) + "%";
document.getElementById('u6-output').innerHTML = "U6 Unemployment Rate: " + u6Rate.toFixed(2) + "%";
document.getElementById('analysis-output').innerHTML = "The U6 rate is " + (u6Rate – u3Rate).toFixed(2) + " percentage points higher than the standard U3 rate, accounting for underemployment and discouraged workers.";
}
What is the U6 Unemployment Rate?
The U6 Unemployment Rate is considered the "real" unemployment rate by many economists. While the headline figure reported in the news (U3) only counts people who are actively looking for work, the U6 rate provides a broader, more comprehensive picture of the labor market's health.
The U6 Calculation Formula
To calculate the U6 rate, you must include several groups that are excluded from the standard calculation:
Numerator: Total Unemployed + Marginally Attached + Part-Time for Economic Reasons
Denominator: Labor Force (Employed + Unemployed) + Marginally Attached
Key Components Explained
Understanding the difference between U3 and U6 requires knowing who is being counted:
Marginally Attached: Individuals who want a job and have looked for work in the last 12 months but have given up actively searching in the last 4 weeks. This includes "discouraged workers."
Part-Time for Economic Reasons: Also known as the "underemployed." These are people who have part-time jobs but want full-time hours and are unable to find them due to economic conditions.
Example Calculation
Imagine a small economy with the following statistics:
During economic downturns, the gap between the U3 and U6 rates often widens. This occurs because employers may cut hours rather than laying people off, increasing the number of underemployed workers. Policy makers use the U6 rate to determine if the economy is truly reaching "full employment" or if there is significant hidden slack in the labor market.