Nearly 25% of Americans are now 'functionally unemployed' -- here's what that 'harsh reality' really means

[Yo_Mama_Been_Loggin]

A low unemployment rate typically signals that an economy is generally healthy. The unemployment rate in the U.S. remained near a 50-year-low in April 2025 at 4.2% — plus, American employers added 177,000 jobs in April despite the uncertainty of Trump’s tariffs and trade wars.

This all sounds good, right? Not so fast.

The “true” rate of unemployment in April, according to the Ludwig Institute for Shared Economic Prosperity (LISEP), was 24.3%, up 0.03% from the previous month. LISEP’s True Rate of Unemployment (TRU) includes the unemployed, as well as workers who are employed but still struggling.

“We are facing a job market where nearly one-in-four workers are functionally unemployed, and current trends show little sign of improvement,” said LISEP Chair Gene Ludwig in a statement published on PR Newswire.

https://finance.yahoo.com/news/nearly-25-americans-now-functionally-170000849.html

[ProfessorGAC]

2. Don't Care For The Term

"Grossly underpaid" seems more appropriate than trying to dress up bad jobs at very low pay in pseudo-economic terminology.
These people are not unemployed. They are, however, paid ridiculously low wages.
Ludwig is trying to make this an economic phenomenon instead of a financial condition caused by too kuch ficus on profit & executive pay.
There isn't an economic policy solution. There is only a moral solution.

[creon]

5. true

[creon]

3. true

Many people are working "off the books" ( paid cash), working part time jobs ( more than one)

It has been this way for a long time

[bucolic_frolic]

4. Profits are being skimmed up the income scale.

People at the bottom face a multitude of costs compared to 30-40 years ago as wages stagnate relative to inflation. The cost of everything is up even as new must-haves are added - smart phones, streaming, transportation, taxes, user fees ...... it never ends. Meanwhile the corporations and elites continue to grow their piece of the pie apace.

[rickyhall]

6. That was most my work life. I worked 50 years and I get $1050/month SS. Shit wages.

[Initech]

7. But hey, there's a golden age coming! Or something.