Misery Index

Macroeconomics
Updated Apr 2026 • Has calculator

The sum of the unemployment rate and the inflation rate — a simple gauge of economic hardship.

What is Misery Index?

The Misery Index was developed by economist Arthur Okun in the late 1960s to provide a single intuitive number capturing economic discomfort. It adds the unemployment rate (people without jobs) to the inflation rate (purchasing power erosion) — two of the most directly felt economic pains for households. A higher index means more hardship. In the US, the index peaked above 20 during the stagflation of the early 1980s, fell below 7 during the late 1990s expansion, and spiked again in 2022 as post-pandemic inflation surged. Economists Robert Barro and Steve Hanke have proposed extended versions incorporating other variables.

Formula

Misery Index = Inflation Rate + Unemployment Rate

Worked Example

Worked example — United States — 2024

Q1 2024

Step 1  US CPI inflation (YoY March 2024): 3.5% (BLS)
Step 2  US unemployment rate (March 2024): 3.8% (BLS)
Step 3  Misery Index = 3.5% + 3.8% = 7.30
Step 4  → US Misery Index of 7.30 in early 2024 is below the 50-year average of ~9.5

Source: BLS — Consumer Price Index & Labor Force Statistics (2024-03-31)

Calculate Misery Index

Annual CPI inflation rate

Official unemployment rate (U-3)

Misery Index

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Not investment advice.

How to Interpret Misery Index

< 6
Low (< 6) — strong economy, low discomfort
6 – 10
Average (6–10) — near historical US norm
10 – 15
Elevated (10–15) — meaningful economic hardship
> 15
High (> 15) — severe stagflation or crisis
Sources
  1. BLS — Consumer Price Index
  2. BLS — Unemployment Statistics
  3. Investopedia — Misery Index