Nearly a quarter of the U.S. is ‘functionally unemployed.' Here's what that means
According to the U.S. Bureau of Labor Statistics, unemployment rates have not shifted much in recent years. The current unemployment rate is reported as being 4.2%—just a slight increase from the 4% it hovered around between 2022 and 2024. But according to a new report, another measure of unemployment is much higher, and steadily growing.
The April report, which comes from the Ludwig Institute for Shared Economic Prosperity (LISEP), a nonprofit that produces original economic research, documents what it calls the ' true rate' of unemployment. That rate refers to 'functional unemployment,' which takes into account those who are job-seeking yet unable to find work, as well as those with full-time jobs but whose earnings put them below the poverty line (under $25,000/year).
The functional unemployment rate has risen for three consecutive months and is currently 24.4%. That means about one in four U.S. adults are considered functionally unemployed.
LISEP Chair Gene Ludwig said in a press release that the outlook on the trend shows 'little signs of improvement' amid lack of an 'influx of dependable, good-paying jobs.'
The report showed the functional unemployment rate rising 1.4% among Black workers to 26.7%. It decreased slightly for white workers, moving from 23.1% to 23%. While the rate for men increased (by 1.2%) bringing the total to 20%, women narrowed the gender gap. Women's true unemployment rate dipped 0.8 percentage points to 28.6%.
While it's no secret that the federal government has been steadily shedding jobs, there haven't been major increases in the unemployment rate. However, the new findings paint a grim picture of how many U.S. workers are struggling to find employment and a livable income. Meanwhile, wage increases haven't kept up with a rising cost of living, not to mention the cost to raise a child, which has ticked up 25% in the past two years alone.
'Amid an already uncertain economic outlook, the rise in functional unemployment is a concerning development,' Ludwig explains. 'This uncertainty comes at a price, and unfortunately, the low- and middle-income wage earners ultimately end up paying the bill.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Times
14 minutes ago
- New York Times
Quote of the Day: Pardons Prop Up Crimes of a Certain Collar
'Of course, stealing by fraud is still stealing. It's just that this is the way rich people do it.' BARBARA L. MCQUADE, a U.S. attorney in Michigan during the Obama administration, on how President Trump's pardons of white-collar criminals could normalize nonviolent offenses.
Yahoo
14 minutes ago
- Yahoo
$110M Wiped Out: Bitcoin Whale Trader Gets Burned As BTC Tags $104,150
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Pseudonymous crypto trader James Wynn, known for his high-leverage strategies, suffered losses exceeding $110 million after Bitcoin's (CRYPTO: BTC) price slipped below key support levels on Friday. Wynn had taken a bold bet on Bitcoin's upward trajectory, opening a massive $830 million long position on May 21, acquiring over 7,700 BTC at roughly $105,000 per coin. By May 24, he had increased his exposure to 11,588 BTC, pushing his position's value to $1.25 billion at an average cost of $108,243. Don't Miss: Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – unlock the power of alternative investments including a Crypto IRA within your retirement account. However, the market turned sharply following U.S. President Donald Trump's announcement of a 50% tariff on EU exports, pushing Bitcoin below $105,000 and triggering large-scale liquidations of Wynn's leveraged holdings. According to Hypurrscan, Wynn faced a series of painful liquidations: 527 BTC worth $55 million was wiped out at $104,950, followed by another 422 BTC at $104,150, and a final 95.5 BTC at $104,620. In total, 1,044 BTC were liquidated over the week. Wynn expressed frustration over market integrity, posting on X: "I have exposed just how corrupt these markets are. Guess it's better to just buy and hold BTC on spot." Despite the drawdown, Wynn reportedly maintains a remaining long position of 1,591 BTC, worth approximately $167 million, with a high-risk 40x leverage and a liquidation threshold near $104,530. Read Next: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase. A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase. Image: Shutterstock Send To MSN: Send to MSN This article $110M Wiped Out: Bitcoin Whale Trader Gets Burned As BTC Tags $104,150 originally appeared on Sign in to access your portfolio
Yahoo
14 minutes ago
- Yahoo
Abbott pitches 7 crisp innings as the Reds hold off the Cubs
Chicago Cubs' Michael Busch (29), center, slaps hands with third base coach Quintin Berry. left, after hitting a triple during the eighth inning of a baseball game against the Cincinnati Reds, Friday, May 30, 2025, in Chicago. (AP Photo/Erin Hooley) CHICAGO (AP) — Andrew Abbott pitched seven shutout innings in his third consecutive win, helping the Cincinnati Reds beat the Chicago Cubs 6-2 on Friday. TJ Friedl, Tyler Stephenson and Jake Fraley homered for Cincinnati, which improved to 3-1 on a six-game trip. Will Benson had two hits and scored twice. Advertisement The Reds played without outfielder Austin Hays, one of their best hitters. Hays was placed on the 10-day injured list with a left foot contusion. Abbott (5-0) allowed one hit, struck out eight and walked one. The left-hander improved to 3-0 with a sparkling 0.55 ERA in six May starts. Emilio Pagán got two outs for his 14th save, working out of a jam in the ninth. Chicago had won four in a row and seven of eight overall. The NL Central leaders took two of three against the Reds in Cincinnati last weekend. Cubs right-hander Colin Rea (3-2) was tagged for six runs and a season-high 10 hits in 5 2/3 innings. Advertisement ORIOLES 2, WHITE SOX 1 BALTIMORE (AP) — Zach Eflin allowed four hits over seven shutout innings and Baltimore beat the Chicago White Sox. Eflin (4-2) struck out six and walked one in his first scoreless outing this season while lowering his ERA nearly a run to 4.46. Ramón Urías broke a scoreless tie with a sixth-inning sacrifice fly off Sean Burke (3-6). Ryan Mountcastle then swiped home on a double steal, then left before the eighth inning with right hamstring discomfort. Bryan Baker worked a perfect eighth in a game originally scheduled to start at 7:05 p.m. that was moved up to 4:30 p.m. because of expected inclement weather in the area, before Felix Bautista gave up Andrew Benintendi's RBI double in the ninth then stranded two for his ninth save. Advertisement Burke worked six innings after opener Jared Shuster worked an inning plus a batter as the White Sox fell to .200 (6-24) on the road. BREWERS 6, PHILLIES 2 PHILADELPHIA (AP) — Christian Yelich hit two homers and drove in four runs, and victorious Milwaukee limited National League-leading Philadelphia to four hits for its fifth straight win. Yelich hit a three-run homer on the first pitch from Philadelphia reliever Tanner Banks in the fifth inning to break open a close game. He hit his 12th of the season, a solo shot, into the second deck at Citizens Bank Park off righty Carlos Hernandez to lead off the ninth. It was Yelich's 12th career multi-homer game and the second of the season. Advertisement Yelich's shot off Banks was his first off a lefty this season. Before the at-bat he was hitting .147 against left-handers. Brewers opener D.L. Hall pitched three no-hit innings and Quinn Priester (2-2) worked six innings of relief, allowing two runs on four hits for the win. Williams Contreras and Sal Frelick added RBIs, Jackson Chourio had two hits and scored twice for the Brewers, who stole five bases. METS 4, ROCKIES 2 NEW YORK (AP) — Francisco Lindor homered from both sides of the plate and made a leaping catch at shortstop that saved at least two runs, sending New York to a victory over woeful Colorado. Advertisement Juan Soto snapped an 0-for-17 slump with an RBI double and Starling Marte also went deep against Kyle Freeland (0-8) as the Mets won for the fifth time in six games. Huascar Brazobán relieved starter David Peterson (4-2) with runners at second and third in the sixth inning and retired pinch-hitter Mickey Moniak to preserve a 3-1 lead. Sam Hilliard, in his first major league plate appearance this season, connected off Brazobán for his sixth career pinch-hit homer to make it 3-2 in the seventh. Lindor, who homered right-handed off Freeland in the first, went deep from the left side leading off the eighth for his 21st career multihomer game and second this season. Lindor also singled in the third and scored from first on Soto's two-out double. Advertisement Reed Garrett struck out two in a 1-2-3 eighth and Edwin Díaz fanned all three batters in the ninth to remain perfect in 12 save opportunities. GIANTS 2, MARLINS 0 MIAMI (AP) — Matt Chapman homered, Kyle Harrison pitched five shutout innings and San Francisco beat Miami Marlins. Tyler Fitzgerald went 2 for 3 with a double and a stolen base for the Giants, who snapped a three-game losing streak. Harrison (1-1) made his second start since moving to the rotation, with three-time Cy Young Award winner Justin Verlander still out because of a strained right pectoral muscle. Harrison held the Marlins (22-33) without a hit until Eric Wagaman's leadoff single in the fourth. The left-hander didn't allow another one, striking out five and walking three. Advertisement Five relievers held the Marlins to two hits before before Camilo Doval got the final four outs for his sixth save. Chapman hit a solo shot off Marlins starter Cal Quantrill (3-5) that went 420 feet to left, which made it 2-0 in the fourth and tied Chapman with Heliot Ramos and Wilmer Flores for the team home run lead with 10. Quantrill struck out a season-high seven over five innings. He gave up eight hits, two runs and walked one. ANGELS 4, GUARDIANS 1 CLEVELAND (AP) — José Soriano threw six scoreless innings, Mike Trout had a hit in his return to the Angels' lineup and Los Angeles beat Cleveland. Advertisement Jo Adell had three hits and an RBI and Jorge Soler hit a solo homer down the left-field line in the ninth inning as the Angels snapped a five-game losing streak. Cleveland's José Ramírez had his 21-game hitting streak snapped. He drew a walk in the eighth inning to extend his on-base streak to 26 games. The Guardians, who have dropped four of their last five, avoided a shutout on Nolan Jones' RBI single to right with two outs in the ninth. It was the third time this season Soriano (4-5) has gone at least six innings and not allowed a run. The right-hander allowed only four hits with two strikeouts and four walks. Advertisement ASTROS 2, RAYS 1 HOUSTON (AP) — Yainer Diaz homered with two outs in the ninth inning and Framber Valdez pitched a three-hitter to lead Houston to a win over Tampa Bay. The score was tied 1-1 entering the ninth. Garrett Cleavinger (0-1) struck out Jose Altuve and Christian Walker before Diaz sent a 98 mph sinker into the seats in right field to set off a wild celebration. Valdez (5-4) gave up a homer to Jose Caballero in the first inning and tied a season high with nine strikeouts in his ninth career complete game and second this season. Houston trailed 1-0 when Jake Meyers doubled to center field with no outs in the eighth inning and scored on Zach Dezenzo's single on a grounder. Dezenzo moved to second on a throwing error by second baseman Curtis Mead on the play. Advertisement Caballero homered on Valdez's second pitch to give the Rays an early lead. The homer was just his second this season and the first since April 9. Rays starter Ryan Pepiot allowed two hits in 6 2/3 scoreless innings in his second strong start after he threw seven scoreless innings in his last start. BLUE JAYS 11, ATHLETICS 7 TORONTO (AP) — Ernie Clement and Addison Barger hit home runs and Toronto moved over the .500 mark for the first time since April 21 with a victory over the Athletics. Clement, who led off the third inning with a homer, had four hits and scored twice. Barger went deep in the sixth inning to help Toronto pull away for its fifth straight home win too improve to 29-28. Advertisement Chris Bassitt (5-3) worked five innings, striking out six and allowing five runs and seven hits and two walks. Jeffrey Springs (5-4) lasted two innings for the Athletics, who have lost 15 of their last 16 games. He gave up six earned runs, six hits and six walks. Tyler Soderstrom and Shea Langeliers hit solo homers for the Athletics. RED SOX 5, BRAVES 1 ATLANTA (AP) — Trevor Story hit a go-ahead two-run homer in the fourth inning and Boston snapped a five-game skid with a victory over Atlanta. Atlanta jumped out to a lead in the first on Matt Olson's RBI single. Story and Boston took the lead in the fourth, added a run in the sixth and two more in the ninth on a two-run single by Rafael Devers to send the Braves to their fourth loss in five games. Red Sox starter Lucas Giolito allowed one earned run on five hits with three strikeouts over 4 2/3 innings. Five Boston relievers combined to work 4 1/3 shutout innings with four strikeouts and just one hit.
