In a positive turn for the U.S. labor market, the U6 unemployment rate—a broader measure of unemployment that includes those who are underemployed and marginally attached to the labor force—declined slightly in June 2025. Having been recorded at 7.8% in May 2025, the current indicator has now edged down to 7.7%, as per the latest update on July 3, 2025.
This minor decrease illustrates a slow but steady improvement in the labor market, reflecting not only those who are jobless but also part-time workers seeking full-time employment and discouraged workers who may have stopped looking for jobs. A decrease, even as marginal as 0.1 percentage points, is indicative of a gradual return to market stability and economic recovery amid broader economic challenges.
Economists and policymakers alike will be closely monitoring this data in the following months, as it offers a more comprehensive understanding of the current employment situation in the United States. Amid fluctuating economic conditions, continued improvement in these figures may stimulate confidence in the economy's trajectory as the nation moves deeper into mid-2025.
