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Diego Chavez

What is U6 unemployment and how does it affect my California EDD claim?

So I've been doing a lot of reading trying to understand my unemployment situation and keep coming across this term 'U6 unemployment' in articles about the job market. I'm currently filing weekly claims with California EDD and got curious - what exactly IS U6 unemployment and does it actually matter when it comes to my UI benefits? Like is this something California EDD even looks at when processing claims or is it just an economist thing? I work in the gig economy (was doing delivery driving and some freelance graphic design) so I'm wondering if my type of work situation is somehow captured differently in these unemployment measurements. Anyone who actually understands this stuff please help because I feel like I'm going in circles reading government websites.

U6 is basically the broadest measure of unemployment that the Bureau of Labor Statistics publishes. So there are actually multiple unemployment rate measurements (U1 through U6) and most news headlines use U3 which is the 'official' unemployment rate. U6 is wider - it counts not just people actively looking for work (U3) but also 'marginally attached workers' meaning people who want jobs but stopped actively searching, AND people who are working part-time but want full-time work (called underemployed). For gig workers specifically, U6 is actually a more accurate reflection of labor market stress because a lot of platform workers are technically 'employed' but only part-time or inconsistently. Now, to directly answer your California EDD question - no, EDD doesn't use U6 when processing your individual claim. Your UI eligibility is based on your base period wages, your reason for separation, and your ability/availability to work. But understanding U6 can help you contextualize why the job market might actually be harder than headline numbers suggest.

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ok this actually makes so much more sense now. so when the news says unemployment is like 4% they're using U3 and U6 would be higher? and EDD genuinely doesn't factor any of this in when deciding my claim?

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Exactly right. U6 is typically double or more than the U3 rate. As of early 2025 when U3 was around 4.1%, U6 was hovering closer to 7.9%. And correct - California EDD adjudicators work from your specific claim file, not macro labor statistics. Your individual circumstances are what matter for your UI determination.

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wait i thought there was a U7 too? or am i making that up lol

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To add some practical context here - as someone who went through a California EDD claim last year after losing a part-time warehouse job, I can confirm that EDD really does NOT care about U6 or any of those BLS measures when processing your claim. What they care about is: 1) Your base period earnings (roughly the first 12 of the last 15 months before you filed), 2) Whether you were laid off vs quit vs fired, 3) Whether you're actively looking for work and documenting those job searches, and 4) Whether you're able and available for full-time work. The U6 rate is genuinely more of an academic/policy discussion thing. For gig workers though, the California EDD eligibility situation is actually more complicated because of AB5 and how gig income gets classified.

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The AB5 thing is what really confuses me. I was doing DoorDash and some freelance design work. Does EDD look at those differently for the base period calculation?

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Yes unfortunately they can. DoorDash drivers were affected by Prop 22 which carved them out of AB5 as independent contractors, so that income likely wouldn't count toward your UI base period wages the same way W2 income would. The freelance design work depends entirely on how you were classified. This is genuinely worth calling EDD to clarify for your specific situation.

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Getting EDD on the phone about something like this is basically impossible though. I tried for THREE WEEKS to get someone on the line to explain my gig income situation

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Since someone mentioned the phone situation - I was in a similar boat trying to reach EDD to sort out a question about my base period and whether some contract work counted. Spent forever getting disconnected or hitting busy signals. Someone in another thread mentioned Claimyr (claimyr.com) and I was skeptical at first but it actually got me through to an EDD agent within a couple hours. There's a video showing how it works at https://youtu.be/JmuwXR7HA10 - basically it navigates the phone system for you and calls you back when an agent is available. For something like your gig income classification question, you really do need to talk to an actual EDD rep because the answer is going to be specific to your work history.

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does this actually work?? i've heard of similar things and they never delivered

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It worked for me - got a callback and talked to an actual EDD agent. I think results can vary depending on time of day and call volume but it beat spending my whole morning redialing

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gonna try this for my adjudication question bc i've been waiting 5 weeks with no update and can't get anyone on the phone

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to answer the actual U6 question more simply - think of unemployment like a spectrum. U1 is the most narrow (people unemployed 15+ weeks). U3 is what you see in news. U6 is the widest net. For 2025 California specifically, the state unemployment rate (using U3) has been elevated compared to national averages, but if you used U6 methodology for California it would capture all the underemployed gig workers, part-timers wanting full time work, etc and the number would be significantly higher. None of this affects YOUR california EDD claim processing though.

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this is really helpful context thank you

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California's labor market is genuinely weird because of the gig economy concentration here compared to other states. Makes the headline numbers kind of misleading imo

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ok so I'm gonna be the person who says I literally googled this same question two months ago when I was filing my California EDD claim and spent like 45 minutes down a rabbit hole about BLS methodology when I should have just been filling out my weekly certification lol. Don't make my mistake - U6 is interesting economics stuff but has zero bearing on your EDD claim. Focus on your weekly certifications, your job search log (you need to document 3 job search activities per week unless you're on standby), and making sure your contact info in UI Online is current.

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lmaooo I definitely did the same thing. ok focusing on the actual claim stuff now

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The job search requirement catches people off guard. You literally need to log employer name, contact info, position applied for, and method of contact for each activity. EDD can audit those records.

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wait standby status means you dont have to do job searches?? how do you get standby status

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how do you get standby status?? my employer said I might be called back in a few weeks and I had no idea this was even a thing. I've been doing all my job searches for nothing potentially

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Standby status is for claimants who have a definite return-to-work date within 60 days. Your employer needs to provide a written statement confirming you'll be recalled. You'd submit that to EDD and request standby - it exempts you from the weekly job search requirement. If the recall doesn't happen within the 60 day window, the standby can sometimes be extended but you'd need EDD to approve it.

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omg I need to look into this immediately. Do I do this through UI Online or do I have to call?

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UI Online has the option under your claim management section, but honestly calling to confirm it was processed correctly is worth the effort since if standby isn't properly applied you could get flagged for not meeting job search requirements even if you thought you were covered

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Coming back to the original U6 question with a slightly different angle - U6 actually DOES matter indirectly in terms of the broader policy context for programs like California UI. When U6 is high it signals that even people who ARE employed might be vulnerable to underemployment, which is part of why California has historically had more generous UI benefits compared to many other states. The weekly benefit amount cap, the base period calculation methodology - some of this reflects legislative awareness that California's labor market has substantial hidden stress. Doesn't help you when you're waiting on adjudication obviously but it's not totally irrelevant.

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This is a fair point. California's max weekly benefit amount of $450 is actually on the lower end nationally despite having one of the highest costs of living, which is a whole separate policy discussion about how state UI systems respond to labor market conditions.

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$450 max is honestly not that much in California. I'm in the Bay Area and that doesn't cover rent for two weeks

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I just want to say the fact that understanding your own unemployment claim requires knowing about BLS measurement methodology, AB5, Prop 22, base period calculations, AND now U6 vs U3 is genuinely insane. The system is designed to be confusing. I've been on UI twice in the last 4 years and every time I feel like I need a law degree just to understand what's happening with my own claim.

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honestly though. and then when something goes wrong and your claim goes to adjudication the information they give you about why is so vague

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My last adjudication took 6 weeks and when it resolved they sent a one sentence notice saying it was approved with literally no explanation of what the issue was or why it took so long

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This opacity is intentional to some degree - EDD adjudicators don't want to create precedent or give claimants information they could use to structure future claims around. Cynical but that's the reality.

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For the gig worker angle - I went through this exact situation last year. Had some Instacart income and some W2 part time work. The W2 income counted toward my base period, the Instacart income did NOT because I was classified as an independent contractor. This actually worked against me because my base period wages were lower than my actual earnings would suggest, which meant a lower weekly benefit amount. Really frustrating. If you're primarily gig economy you might be surprised by how little EDD recognizes those earnings.

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this is exactly my situation. So my DoorDash income is basically invisible to EDD? That's genuinely wild

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Essentially yes, unless the classification rules around gig platforms change significantly. Your weekly benefit amount is calculated from covered wages only - so employer-reported W2 type wages. Independent contractor 1099 income doesn't factor in under current California UI law.

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This is such a fundamental problem with how the gig economy is classified. These people are functionally employees but get none of the protections

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Adding a practical tip - when you call California EDD to ask questions about things like base period calculations or gig income eligibility, have these specific things ready: your Social Security number, your claim start date, the names of ALL employers during your base period (including gig platforms even if they won't count), and specific dates worked. Agents have limited time per call and the more organized you are the more you'll get answered in one call. I learned this the hard way after a call where I got flustered and forgot half my questions.

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also write your questions down BEFORE calling because the hold time is so long you forget what you even called about

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Yes absolutely. I keep a running notes doc specifically for EDD questions. Sounds excessive but when you're waiting 45 minutes to talk to someone you want to make the most of every second.

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slightly off topic but does anyone know if the U6 data breaks down by state? like is there a California-specific U6 equivalent?

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BLS publishes state-level labor underutilization data that functions similarly to U6 - it's in their LAUS (Local Area Unemployment Statistics) program. California EDD's own research division also publishes labor market reports that capture some of this broader underemployment data. It's not always called 'U6' at the state level but the methodology is comparable.

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interesting ok so California EDD actually does track this kind of data just not for individual claim purposes

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Right - there's a distinction between EDD the research/labor market statistics arm and EDD the benefits administration arm. They're technically the same agency but operate pretty separately. The research side publishes tons of labor data. The benefits side processes your claim and doesn't reference macro labor stats.

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I've been reading this whole thread and I'm realizing I've been misunderstanding what adjudication even means. I thought it just meant my claim was being reviewed normally but it sounds like it's something specific that happens when there's an issue? My claim has said 'pending' for two weeks and now I'm worried

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Adjudication specifically means there's an eligibility question that needs to be resolved before benefits can be paid. 'Pending' can sometimes just mean normal processing but if it's been two weeks you may want to check UI Online for any messages or requests for information. Sometimes EDD needs additional documentation and the notice gets missed.

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I don't see any messages in UI Online but I also can't get anyone on the phone to tell me what's happening

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This was exactly my situation. For getting through to EDD when you're stuck in this loop, Claimyr (claimyr.com) is worth trying - it got me connected to an actual agent when I couldn't get through on my own. Video walkthrough at https://youtu.be/JmuwXR7HA10 if you want to see how it works before trying it.

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real talk the U3 vs U6 distinction matters a lot for how people emotionally experience the job market. when the official rate is low people assume finding work should be easy and anyone unemployed is either lazy or picky. U6 captures a much more realistic picture of how hard things actually are for people with irregular work histories, part time situations, etc. edd claimants are often in the U6 population by definition

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This is such a good point. There's so much stigma around claiming unemployment when the headline number seems low, but U6 tells a very different story about actual labor market conditions

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and in California specifically where housing costs are so extreme, being underemployed or working gig jobs without stability is genuinely precarious even if you technically have 'income

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The policy implication is that UI systems designed around U3 thinking may underserve the populations most represented in U6 - exactly the gig workers, part-timers, and marginally attached workers who have the most irregular relationships with traditional employment

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can i ask a dumb question - when you file weekly certifications with california edd do you have to report gig income? like if I do a few DoorDash deliveries in a week while collecting UI do I have to report that?

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Not a dumb question at all - yes, you absolutely must report any income earned during each week you certify, including gig income. You report gross earnings for the week you EARNED them, not when you were paid. EDD has a formula - generally they disregard the first 25% of your weekly benefit amount and then reduce benefits dollar for dollar after that. Failing to report earnings is considered fraud and can result in overpayment notices and disqualification.

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ok good to know. so it doesn't completely eliminate my benefits for that week, it just reduces them based on how much I earned?

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Correct, as long as your gig earnings don't exceed your weekly benefit amount you'll still receive some UI payment. The partial payment calculation is actually one of the things EDD handles better than many people expect.

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UPDATE on my claim situation that's kind of related to this thread - I finally got through to EDD (used Claimyr, it actually worked, took about 2 hours for the callback but I got a real agent) and asked specifically about my gig income and base period question. The agent confirmed that my 1099 contractor income from rideshare doesn't count toward my UI base period wages, but my part time restaurant W2 job DOES count, and that's what my claim is based on. Weekly benefit amount is lower than I expected but at least I understand why now. For anyone else confused about the gig income situation - definitely worth calling to get a specific answer for your claim.

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this is so helpful thank you for reporting back. and glad the claimyr thing worked for you

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2 hours for a callback is actually way better than what I experienced trying to call in myself and just getting disconnected

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ok I'm going to try Claimyr for my pending claim situation. two weeks with no info and I need answers

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just want to circle back to the original question one more time for anyone who finds this thread later via google - U6 unemployment is a broad labor underutilization measure from BLS that includes: officially unemployed people (U3), marginally attached workers who want jobs but stopped looking, and people working part-time who want full-time work. California EDD does NOT use U6 when determining individual unemployment insurance eligibility or benefit amounts. Your California UI claim is governed by your specific base period wages, separation reason, and ongoing eligibility requirements. U6 is useful context for understanding real labor market conditions but won't affect your individual claim processing.

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perfect summary. bookmarking this for when I inevitably forget in two weeks

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This is the answer. Good summary.

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appreciate someone actually writing a clear tldr

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