The dramatic 0.4 drop in the official BLS unemployment rate to 6.3 was offset entirely by an identical drop in labor force participation to 62.8. The entire improvement in the headline numbers was due to this deterioration. The all-in U-6 measure likewise remained at a 15.7 effective rate.
9.7 % - Headline
15.7 % - All-In (U-6)
The apparent confusion over labor market conditions among policy-makers, particularly at the Federal Reserve Board, is entirely unnecessary. The unemployment rate is up and the labor force participation rate is down, and we hear much discussion about how to disentangle the effects. But in fact, under reasonable assumptions, they measure the same phenomenon -- unemployment.