Here in the US we have different unemployment numbers to track different kinds of unemployment. The most common number is the U3, which measures all the people

Here in the US we have different unemployment numbers to track different kinds of unemployment. The most common number is the U3, which measures all the people who want to get back to work. That number is a good way to track all the labor that could easily be pulled into the market if the right jobs were available. Shorter term shocks might move this number around, as people get laid off and find new employment. There is also the U6 rate, which includes a lot of people that have fallen out of the market, and those who have taken up part time work because they couldn’t find full time work. You have to look at both to get a good picture of the employment situation. There are a lot of cases where the U3 might drop, a good thing in normal times, because the economy is so bad that a lot of workers have either given up on finding work, or have taken up part time work since they can’t find a full time job. Both rates are useful, but focusing on only one will certainly lead you astray.