The unemployment rate is 3.7%. It is also 4.0%, 4.6% and 7.2%.

While the official unemployment rate does help in assessing the status of the labor market, it can be misleading or only show a portion of the big picture. In this blog, we walk you through three more measures of unemployment, which take into account discouraged workers, marginally attached workers, and underemployed workers.

How Low Can the Unemployment Rate Go?

The current U.S. unemployment rate has been decreasing for over the last nine years. This has some asking, “How low can the unemployment rate go?” The best insight into this question may come from considering economic theory, analyzing historical trends, and tracking Federal Reserve policy.