Ludwig Institute Puts US Functional Unemployment at 24.9% as July Joblessness Held at 4.2%
Updated
Updated · CBS New York · Aug 21
Ludwig Institute Puts US Functional Unemployment at 24.9% as July Joblessness Held at 4.2%
1 articles · Updated · CBS New York · Aug 21
Summary
24.9% of U.S. workers were “functionally unemployed” in July under the Ludwig Institute’s broader gauge, which includes job seekers, involuntary part-timers and people earning poverty-level wages.
That TRU measure has risen for four straight months even as the official unemployment rate stayed at 4.2%, prompting LISEP to argue the labor market looks weaker than headline data suggest.
115,000 jobs were added in July, missing expectations, while workforce participation slipped and wage growth trailed inflation—3.2% versus 3.4% CPI—squeezing real incomes.
Gregory Daco of EY-Parthenon cautioned that a 20%-plus unemployment reading does not match other economic evidence, but said slower wage growth and weak real income are still restraining consumer spending and broader growth.