logo
The hidden job crisis: 25% of Americans are functionally unemployed and it's worse than it sounds

The hidden job crisis: 25% of Americans are functionally unemployed and it's worse than it sounds

The unemployment rate in America seems low. However, a new report suggests a different story. The Ludwig Institute says the 'true' unemployment rate is much higher. It includes people working part-time or earning low wages. Black and Hispanic workers are affected more. The institute hopes to provide a clearer picture of the economic situation. This helps policymakers make better decisions.
Tired of too many ads?
Remove Ads
The True Unemployment Rate Might Surprise You
How LISEP Measures Who's Really Employed
Tired of too many ads?
Remove Ads
Work full-time (35 or more hours per week)
Earn at least $25,000 annually before taxes
Why the Official Numbers Doesn't Show the Real Picture
Who's hit the hardest?
Black workers: 27% functionally unemployed
Hispanic workers: 28%
White workers: 23%
Women overall: more likely to be functionally unemployed than men
Why it matters
Tired of too many ads?
Remove Ads
FAQs
At first glance, the U.S. job market looks strong, as the unemployment rate remained near a 50-year low in April 2025 at 4.2%, and American employers added 177,000 jobs, even amid the uncertainty of tariffs and trade wars, as per a report.But the 'true' rate of unemployment in the US in April was 24.3%, which rose 0.03% from the previous month, as per the Ludwig Institute for Shared Economic Prosperity (LISEP) data, reported Moneywise. LISEP's True Rate of Unemployment (TRU) includes the data of the unemployed people in the US and also the workers who are employed but still struggling, according to the report.LISEP Chair Gene Ludwig said, 'We are facing a job market where nearly one-in-four workers are functionally unemployed, and current trends show little sign of improvement,' quoted Moneywise.The institute's metric, called the True Rate of Unemployment (TRU), redefines what it means to be employed, and unlike the Bureau of Labour Statistics, which counts a person as employed even if they worked as little as one hour in a two-week period, TRU focuses on whether that work is actually sustainable, according to the report.Anyone falling short of that, like part-time workers looking for more hours, those earning poverty-level wages, or people who aren't counted by the BLS because they stopped looking for work are included in the TRU, as per Moneywise.Ludwig explained that, 'The harsh reality is that far too many Americans are still struggling to make ends meet, and absent an influx of dependable, good-paying jobs, the economic opportunity gap will widen,' as quoted in the report.The official unemployment rate leaves out people who aren't actively job hunting, even if they want work, and in April, that included 5.7 million people, as per Moneywise. TRU includes them along with low-wage workers and the underemployed, offering a more complete view of who's actually making a living, according to the report.LISEP said the rate reported by the BLS is 'not technically false,' but is 'deceiving,' considering the number of Americans in the workforce who are 'employed on poverty-like wages' or 'on a reduced workweek that they do not want,' reported Moneywise.The numbers are even more concerning when broken down by race and gender, as per Moneywise report:The institute also revealed that Black Americans have had a higher TRU than white Americans every single month since 1995, as per the report.LISEP says, this method, 'provide policymakers and the public with a more transparent view of the economic situation of all Americans, particularly low- and middle-income households, compared with misleading headline statistics,' quoted Moneywise.Ludwig said, 'Amid an already uncertain economic outlook, the rise in functional unemployment is a concerning development,' adding, 'This uncertainty comes at a price, and unfortunately, the low- and middle-income wage earners ultimately end up paying the bill," as quoted in the report.It's reported by the Ludwig Institute for Shared Economic Prosperity (LISEP), which aims to show the full picture of employment in the US.Not exactly, because it's just limited. LISEP says it's 'not technically false,' but it doesn't tell the full story.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Walmart faces renewed boycott calls over owner Christy Walton's action - Here's what happened
Walmart faces renewed boycott calls over owner Christy Walton's action - Here's what happened

Hindustan Times

time2 hours ago

  • Hindustan Times

Walmart faces renewed boycott calls over owner Christy Walton's action - Here's what happened

Walmart is facing a fresh wave of backlash, not for its pricing, but for its proximity to a message that's being seen as a critique of President Donald Trump and his Make America Great Again (MAGA) rhetoric. The person at the center of the row is Christy Walton, a billionaire philanthropist and member of the family that owns America's largest retail empire. Walton's ad in The New York Times called for democratic engagement, as per Newsweek. But for some, it read like a direct shot across political lines. The message encouraged Americans to show up, speak up, and be civil in political conversations. It was released under the banner of 'No Kings Day,' a symbolic gesture for civic participation and democratic values. There was no mention of any political party. No leader was named in Walmart's advert. The ad spoke of honoring commitments to allies, protecting against dictators, and respecting trade partnerships-remarks, which many have taken as a veiled criticism of Donald Trump's "America First" foreign policy. The message ended with: "The honor, dignity and integrity of our country is not for sale. Show up, attend your town halls, be civil." The ad stated that the views expressed were 'solely those of Christy Walton." The ad didn't go unnoticed in conservative circles. Kari Lake, the Trump administration's senior adviser at the US Agency for Global Media, wasted no time in sharing her take. Taking to X (formerly Twitter), she posted a photo of the ad with a pointed question: 'Do you shop at Walmart?' According to Newsweek, she wasn't alone. Other MAGA supporters joined in, advocating for a boycott of Walmart. As of now, Walmart has made no official comment on the matter. The ad was published under Christy Walton's name, not the company's. Whether the matter will gain real traction or fizzle out remains to be seen. It encouraged Americans to attend town halls and participate in civic discourse, promoting values like commitment to allies, democratic principles, and respect for global partnerships. No, the ad didn't name Trump directly. However, its language and themes were widely interpreted as a critique of his foreign policy and "America First" approach. The ad was placed by Christy Walton, heiress to the Walmart fortune. It clearly stated that the opinions expressed were hers alone.

China, US Haggle Over Details as Trade Talks Stretch On
China, US Haggle Over Details as Trade Talks Stretch On

Mint

time3 hours ago

  • Mint

China, US Haggle Over Details as Trade Talks Stretch On

Supply Lines is a daily newsletter that tracks global trade. . Talks between the US and China extended later into their second day in London, with financial markets on edge as the world's largest economies negotiate over key tech and industrial exports and deescalating their trade war. The teams, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, were still holding discussions Tuesday night in order to iron out technical details, according to a Treasury official. Members of the US and Chinese delegations returned to Lancaster House, a Georgian-era mansion near Buckingham Palace serving as the meeting site, just after 8 p.m. local time and resumed talks, which began around 10:40 a.m. The sides had taken a break around 5:30 p.m. 'We're going to try to finish things, so that's the objective,' US Commerce Secretary Howard Lutnick told reporters. 'I think we're working on all sorts of trade issues and I think the talks are going really, really well.' Asked if negotiations would conclude Tuesday, Lutnick said, 'if they need be, we'll be here tomorrow but I hope they end this evening.' Bond and currency markets are closely monitoring the talks for clues on the potential economic impact. US stocks rose to session highs following Lutnick's remarks. President Donald Trump told reporters at the White House on Monday that 'we are doing well with China. China's not easy,' adding that he was 'only getting good reports' from that day's nearly seven-hour session. Bessent said after day one they had a 'good meeting.' The key issue this week is re-establishing terms of an agreement reached in Geneva last month, in which the US understood that China would allow more rare earth shipments to reach American customers. The Trump administration accused Beijing of moving too slowly, which threatened shortages in domestic manufacturing sectors. In return, the Trump administration is prepared to remove a recent spate of measures targeting chip design software, jet engine parts, chemicals and nuclear materials, people familiar with the matter said. Many of those actions were taken in the past few weeks as tensions flared between the US and China. 'A US decision to roll back some portion of the technology controls would very much be viewed as a win by China,' said Dexter Roberts, nonresident senior fellow at the Atlantic Council's Global China Hub, adding that the possibility of unwinding 'any controls' seemed 'pretty much unthinkable' until recently. A month ago Beijing and Washington agreed to a 90-day truce through mid-August in their crippling tariffs to allow time to resolve many of their trade disagreements — from tariffs to export controls. Lancaster House carries historical significance. It has hosted major addresses by UK prime ministers, speeches by central bank governors and parties for Britain's royal family. At the same time, Trump's trade team is scrambling to secure bilateral deals with India, Japan, South Korea and several other countries that are racing to do so before July 9, when the US president's so-called reciprocal tariffs rise from the current 10% baseline to much higher levels customized for each trading partner. Meanwhile, Chinese President Xi Jinping on Tuesday held his first phone conversation with South Korea's newly elected President Lee Jae-myung and called for cooperation to safeguard multilateralism and free trade. 'We should strengthen bilateral cooperation and multilateral coordination, jointly safeguard multilateralism and free trade, and ensure the stability and smoothness of global and regional industrial chains and supply chains,' Xi said, according to the CCTV report. With assistance from Colum Murphy. This article was generated from an automated news agency feed without modifications to text.

Trade talks with China ‘going really well', says US Commerce Secretary Howard Lutnick
Trade talks with China ‘going really well', says US Commerce Secretary Howard Lutnick

Hindustan Times

time3 hours ago

  • Hindustan Times

Trade talks with China ‘going really well', says US Commerce Secretary Howard Lutnick

US Commerce Secretary Howard Lutnick said that trade talks with China "are going really well" and hoped to wrap up the discussions by Tuesday night, but said that officials would be present in London on Wednesday if need be. American and Chinese officials are in the United Kingdom for the trade talks against the backdrop of the tariff war triggered US President Donald Trump's sweeping global levies. "I think the talks are going really, really well. We're very much spending time and effort and energy - everybody's got their head down working closely," Lutnick told reporters at Lancaster House in London. "I hope they end this evening, but if they need be, we'll be here tomorrow, but I hope they end this evening," he added. A Treasury official said that the teams, led by the US's Scott Bessent and Chinese Vice Premier He Lifeng, were still talking on Tuesday evening to finalise on technical details. The session could stretch into the night, the official also stated. Meanwhile, Lutnick's remarks about trade talks with China going well led to the US dollar gaining on Tuesday. Officials from the world's two largest economies were meeting in London to try to defuse a dispute that has gone from tariffs to restrictions over rare earths. Earlier on Monday, President Trump had also told reporters at the White House that "we are doing well with China. China's not easy". He added that he was "only getting good reports" from that day's talks. The US and China have been engaged in a trade war ever since Donald Trump announced sweeping global tariffs on multiple countries. As Washington slapped Beijing with 145 per cent tariffs on its goods, the latter was prompted to hit back with 125 per cent levies on American goods. On May 12, the two countries arrived at a 90-day deal to roll back some of the tit-for-tat tariffs they imposed on each other. However, the temporary halt did not address the wider issues that have strained the US-China ties. None of the issues starting from the illegal trade of fentanyl to the status of democratically-governed Taiwan to US's complaints about Beijing's dominant economic model were addressed.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store