Unemployment 101

 

Unemployment 101    For millions of Americans, the prospect of becoming unemployed is a persistent source of financial anxiety. The US unemployment rate, or the percentage of people in the labor force who are actively looking for work but aren't currently employed, has long been considered an economic bellwether. Many economists agree that a rate between 4% and 5% is considered healthy. As of June 2026, the US unemployment rate was 4.2%. > Learn how the unemployment rate is calculated. (More) > The US Bureau of Labor Statistics' monthly jobs report tracks the unemployment rate and more. (More) Americans who are unemployed for up to 26 weeks while actively looking for work can receive unemployment benefits. These weekly payments, facilitated by the government, are calculated based on one's previous wages and funded by employer payroll taxes. Also known as unemployment insurance, the program was introduced as part of the Social Security Act that Congress passed during the Great Depression in 1935 after unemployment hit a record high of about 25% in 1933. > Over 1.9 million Americans—more than a quarter of those unemployed—have been classified as "long-term" unemployed. (More) > Inside the state of the labor market for recent college graduates. (More) > Unemployment is typically sorted into four different types. (More) Economic downturns are the primary cause of unemployment in the US, with a slowdown in economic activity leading to decreased demand for goods and services, resulting in layoffs and business closures. > Explore an interactive tool that reveals why Americans are unemployed. (More) > The Sahm rule signals recessions based on unemployment trends. (More) Discover more:  > The US youth unemployment rate jumped from 6.6% in 2023 to 10.4% in 2025. (More) > Listen to legendary investor Marc Andreessen break down the lump of labor fallacy. (More) > The college degrees with the highest unemployment rates. (More)