The Hidden Crisis of Functional Unemployment in America

While the U.S. government reports an unemployment rate of just 4.2% in April, a startling study by the Ludwig Institute for Shared Economic Prosperity (LISEP) suggests the "true rate" is closer to 24.3%, affecting approximately 66 million Americans.

Understanding the True Scale of Unemployment

The LISEP study expands the definition of unemployment to include not only those actively seeking work but also individuals in part-time or low-wage jobs that fail to provide a livable income. This approach sheds light on the millions of Americans left behind by traditional economic metrics.

A Flawed System?

Gene Ludwig, LISEP’s chairman, criticizes the current unemployment data for its narrow criteria, which counts anyone who has worked as little as one hour in the past two weeks as employed, regardless of their income level or job stability.

Economic Opportunity Gap Widens

Ludwig warns of a growing economic opportunity gap, emphasizing the need for more dependable, well-paying jobs to address the struggles of millions of Americans.

Expert Skepticism

Despite the study's findings, some experts question its methodology. Labor economist David Card points to existing government data that already accounts for underutilized labor, including part-time workers seeking full-time employment.