Unemployment only includes people considered “in the labor force”. To be considered “in” the labor force, you have to be employed, employed within the last 2 months, or currently looking for jobs (something like that, it’s been a few years). Labor force participation is currently around 62.5%, so that means about 38.5% plus the 3% unemployment of 62.5% would give us the real rate. Of course, people “not participating” also includes retired people and students without jobs, so there’s that as well.
Historically, the labor force participation is around 62.8%, so tl;dr people are working just fine.
Unemployment only includes people considered “in the labor force”. To be considered “in” the labor force, you have to be employed, employed within the last 2 months, or currently looking for jobs (something like that, it’s been a few years). Labor force participation is currently around 62.5%, so that means about 38.5% plus the 3% unemployment of 62.5% would give us the real rate. Of course, people “not participating” also includes retired people and students without jobs, so there’s that as well.
Historically, the labor force participation is around 62.8%, so tl;dr people are working just fine.