The Bureau of Labor Services calculates U-6. This statistic measures the:
A) underuse of labor that includes discouraged workers, marginally attached workers, and underemployed workers.
B) use of labor based on various demographics.
C) labor force participation rate in a comprehensive way.
D) rate of overuse of labor when workers hold multiple jobs.

Question

Quizplus · Accepted Answer

U-6 is a measure of labor underuse that includes not only the unemployment rate (people without jobs actively seeking work) but also includes the underemployed, marginally attached workers, and discouraged workers. This is a more comprehensive measure than the traditional unemployment rate (U-3) as it takes into account a broader range of individuals who are not fully utilizing their labor potential.

The Bureau of Labor Services Calculates U-6