Real U.S. Unemployment Rate

The U.S. Unemployment Rate, as published by the Bureau of Labor Statistics, does not encompass the labor force participation rate in a historic context. Thus, the Real rate is derived from the average participation rate that the U.S. enjoyed prior to the housing crisis, a better barometer of economic recovery strength, with the difference between the published and real rates being a reflection of a shrinking labor force — and vice-versa, whenever that occurs.