[mercutio2]

I don’t think that’s a very good description of U3, which is the headline rate the US typically uses. Specifically, labor force participation is usually a shorthand for overall workforce participation, looking at everyone of prime working age; that’s not U3. All unemployment measures are linguistically indistinguishable from “labor force participation rate”, so there’s nothing special about the US there.

I agree that U6 and prime age labor force participation rates are both weak, and relevant to worker bargaining power, but to argue that U3 has no basis in reality is absurd.

If I’m looking for labor this month, my pool of applicants will be coming from the U3 pool, people who are actively looking for work.

High U6 unemployment suggests I might do better to raise wages slightly, rather than aggressively, if I urgently need workers.