Nick Nasad
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Macro Data: Which Unemployment Measures Is Yellen Looking At?

We all know that the Fed's QE program, and their tapering of that program, depends on how the employment picture shapes up in the US, as well as how inflation does.

Yet, the unemployment rate has decreased steadily in the US, but the Fed is not that impressed. It's because, as we should also know by now, that the US labor participation rate has been steadily declining as well, so the unemployment rate looks good as people stop looking for work and stop being counted as unemployed.

In testimony today, Yellen put extra emphasis on other unemployment measures, including part-time workers that would prefer full time jobs, and those people that have been unemployed for more than 6 months. @econhedge put together both of these measures in a nifty chart for us. As we can see there's been improvement on both fronts, but they are still quite elevated when compared to previous recessions.