Direct Answer
The U.S. unemployment rate peaked at 14.7% in April 2020 (COVID-19 pandemic) and recovered to 3.4% in January 2023, the lowest since 1969. The Great Recession peak was 10.0% (October 2009). The long-run average since 1948 is approximately 5.7%. The rate was 4.4% in December 2025 and 4.2% in September 2026.
U.S. Unemployment Rate History
U.S. Unemployment Rate at Year End (Selected Years, 1982-2025)
| Year / Period | Unemployment Rate (%) |
|---|---|
| 1982 (peak) | 10.8% |
| 1985 | 7.0% |
| 1990 | 6.3% |
| 1992 (post-Gulf War) | 7.4% |
| 2000 | 3.9% |
| 2003 | 5.7% |
| 2007 | 5.0% |
| 2009 (Dec; Oct peak 10.0%) | 9.9% |
| 2010 | 9.3% |
| 2012 | 7.9% |
| 2014 | 5.6% |
| 2015 | 5.0% |
| 2016 | 4.7% |
| 2017 | 4.1% |
| 2018 | 3.9% |
| 2019 | 3.6% |
| 2020 (COVID recovery, Dec) | 6.7% |
| 2021 | 3.9% |
| 2022 | 3.5% |
| 2023 | 3.8% |
| 2024 | 4.1% |
| 2025 | 4.4% |
Source: St. Louis Fed FRED: Unemployment Rate. Last verified: October 2026, December values checked against BLS series LNS14000000.
Frequently asked questions
What is the natural rate of unemployment?
The natural rate of unemployment (also called NAIRU: Non-Accelerating Inflation Rate of Unemployment) is the unemployment rate consistent with stable inflation -- approximately 4-4.5% for the modern U.S. economy. Below NAIRU, labor market tightness raises wages, which producers pass on as price increases, accelerating inflation. Above NAIRU, slack labor markets reduce wage growth and inflation pressure. The Fed targets keeping unemployment near NAIRU while keeping inflation at 2%. In 2022-2023, unemployment below NAIRU (3.4%) contributed to wage-driven inflation.
What is the difference between U3 and U6 unemployment?
The BLS publishes 6 measures (U1-U6). U3 is the headline unemployment rate (officially unemployed and actively looking for work). U6 is the broadest measure: U3 + marginally attached workers (discouraged + other marginally attached) + part-time workers employed part-time for economic reasons (would prefer full-time). U6 peaked at 17.4% in April 2009 (vs. U3 peak of 10.0%). In 2024, U6 was approximately 7.7-8.0% vs. U3 of approximately 4.1-4.3%. The gap between U6 and U3 indicates labor market quality -- a narrowing gap (fewer involuntary part-timers, fewer discouraged workers) signals a tighter, healthier labor market.
How does unemployment affect the stock market?
The stock market's relationship with unemployment is complex. Rising unemployment is generally negative for stocks: less employment means less income, less consumer spending, lower corporate revenues. However, markets are forward-looking: when unemployment rises during a recession, stocks often anticipate a Fed response (rate cuts) and begin recovering before unemployment peaks. The 2020 example: S&P 500 bottomed in March 2020 when unemployment was just starting to spike, then recovered strongly while unemployment remained elevated through late 2020. Low unemployment generally supports consumer-facing sectors; rising unemployment favors defensive sectors (healthcare, utilities, consumer staples).
Worked Example: Two Recoveries at Two Speeds
The table shows two routes down from a high. From the December 2009 reading of 9.9% to the December 2019 reading of 3.6% is a fall of 6.3 points over ten years, about 0.6 of a point a year, with no year-end in between higher than the one before. From the December 2020 reading of 6.7% to the December 2022 reading of 3.5% is a fall of 3.2 points in two years, about 1.6 points a year. The second recovery was five times faster per year than the first.
Two things the table's own notes warn about. Year-end readings miss the peaks: the 2009 row carries the October peak of 10.0% beside its 9.9% December value, and the 2020 row's 6.7% sits far below the 14.7% of April 2020 named in the Direct Answer, so a chart drawn from year-ends alone understates both recessions. And the long-run average of about 5.7% is above every year-end from 2015 through 2025 except the 2020 row, which is why a reading near 4% has been described as tight rather than normal in recent years; the natural-rate discussion in the FAQ is the better benchmark for the current period than the 1948-to-date average.
Cite This Page
If you reference this table in your own work, use the following citation format and add the date you accessed it:
Swoopr Editorial Team. (2026). U.S. Unemployment Rate History. Swoopr Investment. https://www.getswoopr.com/tables/economy/unemployment-rate-history/
Check the figures against the primary sources listed under References before you rely on or republish them; the series they come from are revised.