Summary
A report from the Ludwig Institute for Shared Economic Prosperity says nearly 25% of American workers are "functionally unemployed." This figure includes those without jobs, those wanting but unable to find full-time work, and those earning low wages. The report suggests the official unemployment numbers might not fully show the current state of the job market.
Key Facts
- 24.8% of American workers are considered "functionally unemployed."
- This includes people without jobs, those unable to find full-time work, and those making $26,000 or less a year.
- The "True Rate of Employment" from LISEP decreased by 0.1% since September but increased 0.7% over the past year.
- The Bureau of Labor Statistics reported the U.S. added 64,000 jobs in November, with unemployment at 4.6%.
- LISEP's rate for "functional unemployment" is about 20 points higher than the official unemployment rate.
- The TRU is higher for Black and Hispanic workers compared to White workers.
- A larger percentage of women are "functionally unemployed" compared to men.
- In 2025, U.S. employers announced over 1.2 million job cuts, the highest since 2020.
