What is Unemployment Rate?
The unemployment rate is the share of the civilian labor force that is jobless and actively looking for work. Published monthly by the Bureau of Labor Statistics in the Employment Situation report, it is the most-cited gauge of labor-market slack and is also known as the U-3 rate.
Live data: Unemployment Rate
Federal Reserve Economic Data (FRED) — · Monthly · 146 observations
Most recent observation: 4.3 Percent as of March 1, 2026.
Understanding Unemployment Rate
The unemployment rate is the share of the civilian labor force that is jobless and actively seeking work. Published monthly by the Bureau of Labor Statistics in the Employment Situation report, it is the most widely cited gauge of labor-market health and one of the two numbers (along with inflation) that define the Fed's dual mandate.
The headline figure is technically the U-3 rate — one of six rates BLS publishes. U-1 through U-2 are narrower; U-4 through U-6 are progressively broader. U-6, which adds underemployed and marginally attached workers, is considered a more complete picture of labor-market slack.
The natural rate of unemployment — the rate consistent with stable inflation — is estimated by most economists at 4.0–4.5% for the modern U.S. economy. When unemployment runs below that rate, labor markets are considered tight and upward wage pressure builds. When it runs above, there's slack.
How Unemployment Rate is calculated
BLS derives the rate from the Current Population Survey, a monthly poll of about 60,000 households. Respondents who are jobless, available for work, and actively looked in the past four weeks are counted as unemployed. Unemployment rate = unemployed ÷ (employed + unemployed), expressed as a percentage of the civilian labor force aged 16 and older.
Historical context
The unemployment rate hit 24.9% in 1933 at the depths of the Depression and 14.7% in April 2020 during the COVID shutdown — the highest since WWII. It touched 3.4% in 2023, the lowest since 1969. Major peaks have come with the 1981–82 recession (10.8%), 2008–09 financial crisis (10.0%), and COVID 2020 (14.7%).
Frequently asked questions
Are people who aren't looking for work counted as unemployed?
No. The unemployment rate only counts people who are jobless AND actively looking. People who stop searching are classified as 'not in the labor force' and don't count in either the numerator or denominator. That's why labor-force participation is also important to watch.
Why does the Fed watch the unemployment rate so closely?
The Fed has a dual mandate — maximum employment and stable prices. The unemployment rate is the cleanest single number for assessing labor-market slack, which informs judgments about wage pressure, inflation, and how much monetary stimulus or restraint is appropriate.
When is the unemployment rate released?
The first Friday of each month at 8:30 a.m. ET, covering the prior month's data. It's released simultaneously with the nonfarm payrolls figure in the Employment Situation report.