The U.S. economy witnessed a slight uptick in its U6 unemployment rate, which rose from 7.9% in July to 8.1% in August 2025, according to the latest data updated on September 5, 2025. This increase signals potential challenges in the broader labor market.
The U6 unemployment rate, which includes not just the unemployed but underemployed and discouraged workers as well, is a more encompassing measure of labor market slack. The rise to 8.1% suggests that more Americans are struggling to find full-time employment or have given up looking for work altogether.
Analysts are closely monitoring these figures as they provide deeper insights into the health of the labor market beyond the headline U3 unemployment rate. With the Federal Reserve keeping a keen eye on employment metrics as part of its monetary policy considerations, fluctuations in the U6 unemployment rate could have significant implications for future economic policies.
