[TeMPOraL]

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).

[isoskeles]

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.

[ericd]

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.