Who the Unemployment Rate Leaves Out

Last month, economic analysts Jazmine Amoako and Sara Estep highlighted a labor market trend that deserves more attention: The share of people who are not in the labor force but want a job has been inching up in recent years. That matters heading into next week's job report because the headline unemployment rate—which gets the most attention—counts only those people who are actively looking for work and therefore misses people who want a job but have not recently searched for one. To understand the true state of the labor market, we also need to pay attention to people who are left out of headline numbers. 

So who are these workers? 

6.5 million people are not in the labor force but want a job now.

Workers who are "not in the labor force but want a job now" are people who say they want to work but are not counted as unemployed because they have not actively looked for work in the last four weeks. They are a subset of people not in the labor force and that are not employed. Yet, when surveyed by the Bureau of Labor Statistics, they report wanting a full- or part-time job. In June 2026, this group accounted for 5.8 percent of people who were not in the labor force, about 6.5 million people nationwide. These barriers are not experienced equally, reflecting broader inequities that shape Black and brown workers' access to employment opportunities. While most people who aren't in the labor force are outside of the labor market by choice—for example, they have retired or are in school—this subset of people express a current desire for work, even though they may not have searched recently. Their exclusion from the unemployment rate illustrates why the headline measure on its own cannot fully capture demand for work. 

People who want a job but are not in the labor force cite a range of barriers that prevent them from actively searching for or finding work. Some are considered “discouraged”: They want a job but have stopped actively looking, because they have been repeatedly rejected for work, believe no viable jobs exist, or don't have the experience necessary for available jobs.  

Women, in particular Black and brown women, disproportionately shoulder caregiving responsibilities, making them more likely to face barriers to labor force participation even when they want to work.

Others face constraints that make it difficult to search for work or limit the hours they are available for work. For example, they may have caregiving responsibilities, health limitations such as illness or disability, or participate in school or job training. These barriers are not distributed equally. For example, a woman who leaves the labor force to care for a young child or aging parent may still want a job but be unable to actively search until she has reliable care in place. Women, in particular Black and brown women, disproportionately shoulder caregiving responsibilities, making them more likely to face barriers to labor force participation even when they want to work. In addition, Black and Hispanic or Latino workers make up a disproportionately large share of discouraged workers relative to their share of the overall labor force. In 2023, Black workers made up 26 percent of discouraged workers despite making up just 13 percent of the labor force. Hispanic or Latino workers made up 24 percent of discouraged workers while making up 19 percent of the labor force. This reflects broader inequities in the labor market, including discrimination and unequal access to opportunity. Taken together, these patterns reflect not just individual circumstances but structural barriers that shape who is able to participate in the labor market. 

The share of people who are not in the labor force but want a job (a measure that reflects long-running challenges) spiked during the pandemic. While the rate has fallen from its peak, it has remained above its 2018-2019 pre-pandemic baseline and has been inching upward in recent years. This suggests that there are still many people who want to work but face barriers that prevent them from participating in the labor market. Addressing those challenges can benefit both workers and the broader economy. People who want jobs can access greater economic opportunities, while employers and communities benefit from a stronger and more inclusive labor force. A stronger labor market isn't just one with low headline unemployment. It's one where people can access work opportunities that meet their needs. 

Barriers to work are shaped by policy choices and public investments. For example, expanding affordable child care can make it possible for more people who already want to work to enter or return to the labor force. This is not about pushing people into work; rather, it’s about expanding access to opportunity for people who want it but face significant hurdles to achieving it—like a parent who leaves their job because they can’t afford the high price of child care. Public investments can help connect workers with employment while also providing much needed support for families and communities. 

Supplementing the unemployment rate with the number of people who are not in the labor force but want a job now is important because it reveals unmet demand for work among people who remain outside of the labor force. Addressing the barriers that keep people from participating, including through robust public investments, can create a stronger labor market while expanding opportunities for those who want to work. A healthy labor market can't be assessed just by low unemployment; we also need to know whether people who want to work actually have a fair opportunity to do so.