The unemployment rate is a key indicator of economic health. When it rises, so do concerns about the economy’s viability. But the official rate – defined as the number of people without jobs who have searched for work in the previous four weeks – excludes many individuals who would like to find full-time employment, but are having trouble doing so (the “discouraged workers”). Other measures of labor underutilization are more inclusive and better capture the true nature of America’s job market. LISEP’s U6 measure tracks individuals who are not employed but want work, have looked for work in the past year, and are available to work. It includes discouraged workers as well as involuntarily part-time workers who want more hours, and those working part time for economic reasons.
Regardless of how unemployment is measured, it has a profound impact on family well-being and stability. Unemployment can deprive children of opportunities for schooling, restrict families’ financial ability to meet basic needs, and limit the capacity of adults to fulfill their family’s pedagogical assignments or participate in cultural life.
Unemployment also exposes families to social stigma, increases housing stress and costs, and may harm their children’s future employment prospects. The effects of joblessness also extend to the broader family unit, resulting in marital dissatisfaction and the formation of new partnerships. Moreover, despite what economists see as a robust job market, 4.0 million families have at least one unemployed family member. This is especially true of Black and Latinx families.