April 2026: Looking Past Unemployment to Underemployment

Each month, the U.S. Bureau of Labor Statistics publishes unemployment numbers as part of its “Employment Situation” news release. The most significant number in that report is the total unemployment rate for the United States and individual states. This number provides a quick look at an economy’s status.

A dropping unemployment rate can signal an improving economy, while an increasing rate signals the opposite. This figure also acts as a proxy for the health of the labor market. The unemployment rate can even shed light on purchasing patterns, as a higher rate tends to accompany less income overall, and as a result, less spending. Additionally, this figure can guide policymakers’ decision-making, especially regarding programs such as unemployment insurance.

Most public discourse about unemployment focuses on this high-level figure, largely because the unemployment rate is the single official definition of unemployment used by the United States government. But what if this does not capture the whole picture?

Read the April 2026 Research Room here.