<p>The U-6 unemployment rate is a broader measure of labor underutilization, including those who are marginally attached to the labor force and those working part-time for economic reasons. It provides a more comprehensive view of the labor market than the official unemployment rate (U-3).</p>

<h2>How It Works</h2>
<p>The U-6 rate is calculated by the Bureau of Labor Statistics (BLS) as part of its monthly employment report. It includes:</p>
<ul>
  <li><strong>Official Unemployed (U-3)</strong>: Those without a job but actively seeking work.</li>
  <li><strong>Marginally Attached Workers</strong>: Jobless individuals not currently looking for work but who have searched for a job in the past 12 months and are available to start work.</li>
  <li><strong>Part-time Workers for Economic Reasons</strong>: Those working part-time because they cannot find full-time employment.</li>
</ul>
<p>The sum of these three groups divided by the total civilian labor force gives the U-6 rate.</p>

<h2>Why It Matters</h2>
<p>The U-6 rate offers valuable insights into the true state of the labor market. For instance, during the Great Recession, the U-6 rate peaked at 17.1% in October 2009, compared to the U-3 rate of 10%. This highlighted the extent of underemployment and labor market distress not captured by the official unemployment rate alone. Understanding the U-6 rate helps policymakers and economists make informed decisions about fiscal and monetary policy.</p>