It's still relevant, though, as a rough measure of employee leverage vs employer leverage. Periods with low unemployment tend to see rising wages and benefits, high unemployment, stagnant or lowering.
Isn't Labour Force Participation Rate a better indicator? Plenty of people opt-out of the job market by going on e.g. disability benefits, getting financial support from family and/or working extra "on the black" (without any trace for tax authorities).
It provides no more accurate of a view IMO, as it lumps together both groups of (a) people who don’t have jobs and need them and (b) people who don’t have jobs and don’t need them. I prefer looking at that figure more than “unemployment” rate, but it overcorrects on the pessimistic side. Maybe that’s why some of us like it.
Of employee leverage (and hence wage growth)? I don't think so, because those employees who opt out aren't competing for jobs with those other employees. I'm not an economist, though.
It might be a better indicator of "how well is the economy serving the needs of the people", depending on what you value.