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U-6 Underemployment Rate: the latest available reading.

7.7% -0.20 vs prior month August 2026 · updated monthly

The U-6 underemployment rate stands at 7.7%, down 0.2 percentage points from the prior month and improving after spiking above 8.7% earlier in the year. This rate captures jobless workers plus those working part-time who want full-time work, making it a broader measure of labor market slack than the headline unemployment rate.

The trend since 2019.

The latest available read: U-6 Underemployment Rate is at 7.7% as of August 2026. Source: FRED · U6RATE.

Why it matters.

A declining U-6 suggests more people are finding adequate work, which typically supports wage growth and consumer spending. If this trend holds, it could ease pressure on the Federal Reserve to cut rates further, affecting mortgage rates and borrowing costs for your household.

Where it fits.

U-6 Underemployment Rate feeds the Jobs & Labor view — one of the six areas behind the site's Macro IQ score.