Latest news with #GeneLudwig
Malaysian Reserve
6 days ago
- Business
- Malaysian Reserve
'Functional Unemployment' Rises; Black, Hispanic Workers Take Biggest Hit, Says Ludwig Institute
Market for jobs paying above poverty wages continues to weaken WASHINGTON, Aug. 13, 2025 /PRNewswire/ — Prospects for workers seeking jobs paying above poverty wages worsened in July, particularly for Black and Hispanic earners, according to the latest report from the Ludwig Institute for Shared Economic Prosperity (LISEP). LISEP's July True Rate of Unemployment (TRU) report—a measure of the functionally unemployed, defined as the jobless plus those seeking, but unable to find, full-time employment and those in poverty-wage jobs—increased 0.6 percentage points, from 24.1% to 24.7%, in contrast with the Bureau of Labor Statistics official rate, which increased only 0.1 percentage points to 4.2%. The functional unemployment rate has now remained at 24% or higher for six consecutive months, which marks a higher level than at the end of 2024. Additional signs of weakness in the labor market include a rise in the True Rate of Unemployment Out of the Population—a measure of functional unemployment for the entire working age population—reflecting a decline in labor force participation, both month-over-month and year-over-year. In addition, the TRU for prime-age workers (25-54) increased by 0.4 percentage points, from 17.3% to 17.7%. 'With good-paying job opportunities waning, low- and middle-income households continue to feel the pressure on multiple fronts—from stubborn inflation to the rising cost of basic necessities, ultimately eroding wage growth,' said LISEP Chair Gene Ludwig. 'Meanwhile, economic policymakers have been slow to react, and it all comes down to headline statistics that do not accurately reflect what's going on in the lives of working Americans.' The 0.6 percentage point increase in the national functional unemployment rate was driven by an increase in the TRU for Black and Hispanic workers, with both posting their highest levels since 2021. The rate for Black workers rose a full percentage point, to 28.9%, while the TRU for Hispanic workers increased 1.7 percentage points, to 29.5%. The rate for White workers remained steady, dropping 0.1 percentage points, to 22.6%. Year-over-year, the TRU has worsened for Black and Hispanic workers but improved for White workers. By gender, the TRU increased for men by 1 percentage point, to 20.6%, while the rate for women remained stable with a 0.1 percentage point improvement, falling to 29.5% 'Often our TRU reports will indicate winners and losers for any given month, but for June, there are really no winners,' Ludwig said. 'Low- and middle-income workers and their families continue to struggle, with this recent rise in functional unemployment adding an additional strain. Further erosion is unsustainable' About TRULISEP issued the white paper 'Measuring Better: Development of 'True Rate of Unemployment' Data as the Basis for Social and Economic Policy' upon announcing the new statistical measure in October 2020. The paper and methodology can be viewed here. LISEP issues TRU one to two weeks following the release of the BLS unemployment report, which occurs on the first Friday of each month. The most recent TRU and supporting data are available on the LISEP website at About LISEPThe Ludwig Institute for Shared Economic Prosperity (LISEP) was created in 2019 by Ludwig and his wife, Dr. Carol Ludwig. The mission of LISEP is to improve the economic well-being of middle- and lower-income Americans through research and education. LISEP's original economic research includes new indicators for unemployment, earnings, and cost of living. These metrics aim to 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. On X: @LISEP_org. About Gene LudwigIn addition to his role as LISEP chair, Gene Ludwig is a managing partner of Canapi LLC, a financial technology venture fund. He is the founder and CEO of Ludwig Advisors, which counsels financial firms on critical matters. Ludwig is also the founder of the Promontory family of companies. He is the former vice chairman and senior control officer of Bankers Trust New York Corp. and served as the U.S. Comptroller of the Currency from 1993 to 1998. He is also author of the book The Vanishing American Dream, which investigates the economic challenges facing low- and middle-income Americans. His forthcoming book, The Mismeasurement of America, will be published in September 2025 and is available for pre-order wherever books are sold. On X: @geneludwig. CONTACT: Jim Gardner press@ (573) 680-1822
Yahoo
11-08-2025
- Business
- Yahoo
Former Comptroller of the Currency Gene Ludwig Addresses Misleading Headline Economic Statistics in Upcoming Book "The Mismeasurement of America"
Government headline stats on jobs, wages, inflation distort economic reality, Ludwig says WASHINGTON, Aug. 11, 2025 /PRNewswire/ -- In his new book "The Mismeasurement of America" former Comptroller of the Currency Gene Ludwig, in his capacity as chairman of the non-profit Ludwig Institute for Shared Economic Prosperity (LISEP), chronicles why public perceptions of the economy differ so significantly from what government-issued headline statistics lead us to believe. The truth, he says, is somewhat disconcerting: The statistics are misleading. "Despite headlines heralding growth and prosperity, most Americans have fallen behind," Ludwig said. "They're working harder year-upon-year not to get ahead but to merely survive. For them, the American dream appears to be slipping farther and farther away." Specifically, Ludwig notes how outdated definitions of economic indicators—some over a century old—distort perceptions of unemployment, wages, inflation, and upward mobility and growth. For instance, unemployment statistics count an individual as employed even if they've only worked a few hours every two weeks. Meanwhile, inflation is measured by an expansive basket of more than 80,000 items, instead of focusing on the core necessities that consume nearly the entire budget of the average low- and middle-income household. "The real issue is how these data are presented," Ludwig said. "At LISEP, we have long advocated for more-responsive and real-world-reflective metrics to measure economic performance. Relying on less accurate, incomplete, and less-transparent data will only lead to misinformed economic policy." In "The Mismeasurement of America" Ludwig presents new, more-accurate ways to understand what's really happening in the American economy, proposing economic metrics that are truly reflective of the real world. "Sound economic policy, like a good weather forecast, relies on timely, comprehensive data," Ludwig said. "But unlike an errant weather forecast—which might lead to minor inconveniences like a wardrobe mismatch or getting caught in the rain without an umbrella—inaccurate economic data could result in policy that means the difference between prosperity and recession." "The Mismeasurement of America" is now available for pre-order through major booksellers and set for release Sept. 30. About LISEPThe Ludwig Institute for Shared Economic Prosperity (LISEP) was created in 2019 by Ludwig and his wife, Dr. Carol Ludwig. The mission of LISEP is to improve the economic well-being of middle- and lower-income Americans through research and education. LISEP's original economic research includes new indicators for unemployment, earnings, and cost of living. These metrics aim to 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. On X: @LISEP_org. About Gene LudwigIn addition to his role as LISEP chair, Gene Ludwig is founder of the Promontory family of companies and Canapi LLC, a financial technology venture fund. He is the founder and CEO of Ludwig Advisors, which counsels financial firms on critical matters. Ludwig is the former vice chairman and senior control officer of Bankers Trust New York Corp. and served as the U.S. Comptroller of the Currency from 1993 to 1998. In addition to his forthcoming book, "The Mismeasurement of America," he is also the author of "The Vanishing American Dream," which investigates the economic challenges facing low- and middle-income Americans. On X: @geneludwig. View original content to download multimedia: SOURCE Ludwig Institute for Shared Economic Prosperity Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
CNBC
13-06-2025
- Business
- CNBC
Americans are losing spending power, say researchers: Most can no longer afford a 'minimal quality of life'
In 2023, about 11% of Americans officially lived in poverty, according to the U.S. Census Bureau. Even more struggle financially, though — and the share may be higher than you think. Many of the headline economic stats you see are based on "survival indexes," says Gene Ludwig, founder of the Ludwig Institute for Shared Economic Prosperity, and don't reflect Americans' full financial picture. "What people are thinking about — a real shared prosperity — is not, 'I can survive,' but, 'What does it take to live a middle-class life?'" he says. "'What does it take to be on the first rung, at least, of the American dream?'" To that end, LISEP developed a "Minimal Quality of Life Index," which takes into account not only essentials, such as food and shelter, but also the costs living a fulfilling life with a chance at upward mobility. Food costs in the model, for example, include occasional trips to casual restaurants as well as the cost of hosting an annual holiday meal. The index factors in basic leisure costs, such as cable and streaming subscriptions, and trips to the six movies and two MLB games per year in the cheap seats. According to LISEP's analysis, most Americans don't meet that standard. In 2023, the bottom 60% of households by income fell well short of the threshold for a minimal quality of life. That's largely because wages have failed to keep up with rising costs, the researchers say. Medical premiums rose 301% from 2001 to 2023, they note, while travel expenses were up 170%. Rent grew by 131%. The cost of raising children, which includes saving for higher education, by LISEP's estimates, grew by 107%. With wages failing to keep pace, LISEP finds that consumers' real spending power decreased by 4%, on average, over that period. Americans who fall short of the minimal quality of life costs may sink into debt or have to forego important financial planning steps, such as saving for college or investing for retirement, to afford modest discretionary expenses such as a gym membership or an occasional vacation. For families looking to get on the path to upward mobility, "it is hard to give advice without being patronizing," says Kevin Brady, a certified financial planner with Wealthspire Advisors. If your budget is stretched thin and you have mouths to feed, there's only so much financial maneuvering that can help. That said, there are a couple key things you can do to lower your living costs and help you put more money toward your goals. You may feel guilty about spending on some of the things that bring you or your family joy, but those small luxuries likely don't break your budget. "I get tired of the 'Stop your Starbucks latte habit' [advice], because in reality it's not people's fault," says Laura Lynch, a CFP and founder of The Tiny House Adviser. "The structures around us have created an expectation of a lifestyle that is increasingly becoming unreachable for folks." You're better off focusing on the major tentpoles of your budget, experts say: Housing, transportation and food costs. Marcos Segrera, a CFP and principal at Evensky & Katz/Foldes Wealth Management, calls these the "Big Three," and attacking them may involve some creativity. "This might mean refinancing a mortgage, choosing a more fuel-efficient or used car, or embracing meal planning to cut down on food waste and expensive takeout," he says. You may want to consider outside-the box solutions to lowering your housing costs, says Lynch. "Co-housing, tiny homes, [accessory dwelling units], multi-generational ownership are all ways to share expenses, resources and create wealth," she says. It's easier to fund your financial goals — paying down debt, building an emergency fund, investing for the future — if there is more money to go around. So "one other piece of advice I have here is to not just focus on expenses, but think more about growing your income however possible," says Brady. "Again, it is easy to say but harder to do this." Boosting your income may mean asking for a raise or finding a different job altogether. Workers who switched companies in May earned an average pay bump of 7%, according to data from ADP. It may make sense to look for inexpensive ways to increase your workplace skills or to familiarize yourself with emerging technologies, such as AI, Brady says. You may even think about picking up a side hustle. You may find it less difficult, in the end, to bring in more money than to cut back on what you provide for the people you love. "Look at both sides, not just spending," says Brady. "Because with a young family, that might be hard to change."
Economic Times
09-06-2025
- Business
- Economic Times
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 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 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 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 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 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 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 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 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 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 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 reported by the Ludwig Institute for Shared Economic Prosperity (LISEP), which aims to show the full picture of employment in the exactly, because it's just limited. LISEP says it's 'not technically false,' but it doesn't tell the full story.
Time of India
09-06-2025
- Business
- Time of India
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 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 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 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 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 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 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 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 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 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 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 reported by the Ludwig Institute for Shared Economic Prosperity (LISEP), which aims to show the full picture of employment in the exactly, because it's just limited. LISEP says it's 'not technically false,' but it doesn't tell the full story.
