By Kalshi View Editorial Team · Updated 2026-07-17

Frances Perkins Building of the United States Department of Labor in Washington, D.C.

Real photograph by Shawn T. Moore / U.S. Department of Labor / Wikimedia Commons, used unmodified under CC BY 2.0. No affiliation or endorsement is implied.

Kalshi Unemployment Rate Markets: BLS U-3 Rules & Price Math

Quick answer: the reviewed KXU3 July 2026 event asked whether the seasonally adjusted U-3 unemployment rate in BLS's Employment Situation Report was strictly above each threshold. These were overlapping cumulative thresholds, not mutually exclusive brackets. The event listed an 8:29 AM ET close before the scheduled 8:30 AM release on August 7, 2026. This guide shows no live odds; verify the current month, rule, depth, price, and fees.
Primary sources checked: July 17, 2026. This guide uses the Kalshi KXU3 July event page, the public Kalshi event API, the generic Kalshi U3 terms, market-rules help, order-book help, the CFTC Kalshi DCM listing, the BLS 2026 calendar, the Employment Situation release, Current Population Survey definitions, the Employment Situation quick guide, and the Kalshi fee schedule. The live terms and official determination control.

What the reviewed KXU3 event measured

Every qualifier matters. The contract names U-3, not U-6; the seasonally adjusted value, not an unadjusted rate; and July, not the release month of August. BLS reports the U-3 rate to one decimal place. Save the live rule and timestamps before entering.

U-3 comes from the household survey

BLS defines the civilian labor force as employed plus unemployed people. To be counted as unemployed, a person generally must have no job, be available for work, and have actively looked for work in the prior four weeks; people waiting to be recalled from temporary layoff are handled under the BLS definition. U-3 is:

U-3 unemployment rate = unemployed people / civilian labor force × 100

Someone without a job who is outside the labor force is not in the U-3 numerator or denominator. This is why labor-force participation can affect the rate even when the count of employed people also changes.

U-3 is not nonfarm payroll growth

Release itemSurveyUnitReviewed KXU3 input?
Seasonally adjusted U-3 rateHousehold surveyPeople as % of labor forceYes
Total nonfarm payroll employment changeEstablishment surveyPayroll jobsNo
U-6 labor underutilizationHousehold surveyBroader % measureNo
Labor-force participation rateHousehold survey% of civilian noninstitutional populationContext, not the named value

The household and establishment surveys use different samples, concepts, and units. Strong payroll growth does not mechanically force U-3 lower. Use the related payrolls contract guide for KXPAYROLLS rules.

Strictly above puts equality on No

Threshold example: if BLS publishes U-3 at exactly 4.2%, the reviewed contract asking whether it is above 4.2% resolves No. A published 4.3% is above 4.2% and satisfies the condition.

The generic U3 terms say the payout criterion is strictly greater than the percentage. Do not replace “above” with “at least.” The published one-decimal rate is the relevant display; a private reconstruction with additional decimal places does not replace the BLS report.

These thresholds overlap; they are not brackets

If July U-3 is 4.3%, then above 4.0%, above 4.1%, and above 4.2% are all true, while above 4.3% is false. The event's contracts are cumulative.

A coherent probability model can derive a one-decimal outcome probability from adjacent thresholds. If the same model gives 78% to U-3 above 4.1% and 46% to U-3 above 4.2%:

P(4.1% < U-3 ≤ 4.2%) = 78% - 46% = 32%

Because BLS publishes one decimal, that interval corresponds to the 4.2% outcome under the reviewed measure. Do not subtract two executable asks as if they were clean probabilities; spread and depth can make the result incoherent.

The 8:29, 8:30, and 10:00 sequence

  1. Before 8:29 AM ET: verify July, seasonally adjusted U-3, strict threshold, side, depth, fees, and status.
  2. 8:29 AM ET: the reviewed event listed its trading close.
  3. 8:30 AM ET: BLS scheduled the July 2026 Employment Situation release.
  4. After release: use the official one-decimal U-3 value in the named report.
  5. Expected expiration: the API listed 10:00 AM ET, with a separate later fallback timestamp.

The Employment Situation is not guaranteed to arrive on the “first Friday” every month; holidays and schedule changes matter. Use the official BLS calendar. Close, release, expiration, determination, and payout remain separate states.

Later revisions do not replace the reviewed expiration value

The generic U3 terms state that revisions to the underlying made after expiration are not accounted for in the expiration value. This is more precise than saying every economic event contract always uses an “initial release.” Another Kalshi series can define its own source, vintage, or deadline, so save the terms that govern the event actually traded.

Calculate the full-order break-even

Suppose a hypothetical 100-contract YES order crosses two ask levels. These are teaching numbers, not current quotes or claimed fills:

AskQuantityCost
$0.4640$18.40
$0.5160$30.60
Total100$49.00
Entry VWAP = ($18.40 + $30.60) / 100 = $0.49

If an independent, rule-matched model assigns a 56% probability to the exact threshold:

Gross EV = 100 × $0.56 - $49.00 = $7.00 before fees

The 46-cent top ask is not the price of the whole order. Fees raise break-even above 49%. A winning purchased position has a $100 gross settlement value; a losing position risks the $49.00 purchase cost plus applicable fees. Use the slippage calculator and payout calculator with current inputs.

Pre-trade checklist

  1. Open the live KXU3 event and save the rule text and timestamps.
  2. Confirm the reference month, seasonally adjusted U-3, and BLS source.
  3. Keep U-3, U-6, payroll jobs, and labor-force participation separate.
  4. Translate “above” literally and place equality on the No side.
  5. Check whether thresholds overlap before deriving any interval probability.
  6. Use the current BLS schedule rather than a first-Friday shortcut.
  7. Read full order-book depth and calculate VWAP for the complete quantity.
  8. Add current fees and size for a full loss.
  9. Keep post-expiration revisions separate from the reviewed expiration value.

Frequently Asked Questions

What unemployment measure did the reviewed Kalshi KXU3 event use?

The July 2026 snapshot used the seasonally adjusted U-3 unemployment rate reported by BLS in the Employment Situation Report for the named month. U-3 is unemployed people as a percentage of the civilian labor force.

Is the U-3 unemployment rate the same as payroll growth?

No. U-3 comes from the household survey and measures people relative to the labor force. Nonfarm payroll employment comes from the establishment survey and counts jobs. The two series can move differently.

Does exactly 4.2% resolve Yes for an above-4.2% KXU3 contract?

No. The reviewed KXU3 rules used a strict greater-than condition, so a published U-3 rate of exactly 4.2% is No for above 4.2%. A published 4.3% is Yes. The live rule controls.

What time did the reviewed July 2026 KXU3 event close?

The public event snapshot listed an 8:29 AM ET close on August 7, 2026, one minute before the BLS calendar's scheduled 8:30 AM July Employment Situation release. Recheck future event timestamps.

Do later BLS revisions change the reviewed KXU3 result?

The reviewed generic U3 terms state that revisions made after expiration are not used to determine the expiration value. Save the live rules because another contract family or later terms version can differ.

Are reviewed KXU3 thresholds mutually exclusive brackets?

No. The July 2026 event used overlapping above-threshold contracts and the public API marked it not mutually exclusive. If U-3 is high enough, several Yes contracts can win.

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Technical and educational information only. Not financial, tax, legal, or employment advice. Kalshi rules, BLS releases, timestamps, prices, depth, fees, and status can change. Verify current primary sources and make your own decisions.