A country’s unemployment rate is a key indicator of the health of its economy. It reflects the number of people without jobs and who are actively seeking employment. High rates of unemployment reduce consumer spending, which is a critical driver of economic growth. This can lead to layoffs, reduced production and economic stagnation. It can also place a burden on government resources in the form of increased reliance on social welfare programs and lost tax revenues. Unemployment can also have a profound impact on individual lives, leading to feelings of despair and hopelessness. It can even lead to health problems such as depression, insomnia and anxiety, poor nutrition, malaise and a greater risk of cardiovascular disease.
In order to understand and address issues surrounding unemployment, it is necessary to have access to a wide range of information about the labor market, including information about how long individuals are jobless, how they became unemployed, and where their jobs are located. The Bureau of Labor Statistics (BLS), an agency within the Department of Labor, regularly produces data on these different aspects of the employment picture in the United States using a monthly survey called the Current Population Survey (CPS).
This monthly survey interview’s a random sample of households and includes questions about employment status. The BLS publishes a range of different unemployment indicators, from U-1, which is the strictest measure, to U-6, which is the most comprehensive measure of labor underutilization and includes unemployed people, discouraged workers and those who want full-time work but are working part time for economic reasons.