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16 <br /> the economic recovery matures. Or it could indicate a more serious issue of underlying <br /> problems with sustaining favorable job growth.3 <br /> Figure 4 illustrates alternative unemployment rate measures for North Carolina and the <br /> U.S. in 2010 and 2016. The"Headline" rate is the rate commonly quoted in media outlets. <br /> However, to be unemployed by this measure, an individual must be without work, must want to <br /> work, and must have actively looked for work in the last month. Those who don't meet the last <br /> condition are often termed"discouraged workers". The "U5" measure eliminates the condition <br /> of looking for work and so includes discouraged workers. "U6" further counts as unemployed <br /> individuals who indicate they are working part-time only because they cannot find full-time <br /> work. <br /> It is clear from the figure that both North Carolina and the U.S. have made progress in <br /> reducing all three unemployment measures. In 2016 the Headline and U5 measures were slightly <br /> lower for the U.S. than for North Carolina, while the U6 measure was marginally higher for the <br /> U.S. than for North Carolina. The conclusion is that North Carolina has seen better <br /> improvement for workers moving from part-time jobs to full-time work. <br /> There has also been an increase in the labor force participation rate for North Carolina. <br /> The rate gained almost a full percentage point from its recent low level in 2014 to 2016, a <br /> significant improvement over the national trend. Still, North Carolina's participation rate is <br /> almost a percentage point less than the national rate.4 <br /> Figure 5. Annual Real Wage Rate Changes (%), NC and the U.S., 2010-2017. <br /> 6 <br /> S <br /> �IIII uulW°uuum IIIIIII <br /> 3 <br /> II IIIIIIIIII <br /> 00 2 IIIIIII <br /> IIIIIIII <br /> 1.. <br /> IIIII pllllllll"'IIIIIIIIIIIII II <br /> 0 11111111 pllllllllllllll <br /> IIIIIIIIIIIII IIIIIII <br /> IIIIIIIIIIII <br /> 3 <br /> 2010.. 2011.. 2012.. 2013.. 2014 2015 2016.. 2017 <br /> imuuuuuuuuuuumuuuuuum N C V..J S <br /> Source: U.S. Bureau of Labor Statistics, May of each year using the CPI deflator. <br /> 3 One such problem could be a lack of marketable skills among some jobless individuals. <br /> 4 The labor force participation is calculated as the percentage of individuals 16 years old and over who are in the <br /> labor force, meaning they are working or actively looking for work. An aging population and an increase in the <br /> number of individuals extending their education in college are two of the main reasons for the participation rate's <br /> downward trend in recent decades. <br /> 5 <br />