The American job market is facing a harsh reality. While official unemployment figures suggest stability, a deeper look reveals that nearly 25 percent of Americans are functionally unemployed. This means one in four workers either lack full-time employment, earn below a living wage, or remain jobless despite wanting work.
The numbers tell a different story than the headlines. The Bureau of Labor Statistics reports a 4.2 percent unemployment rate, a figure that suggests a strong economy. However, the Ludwig Institute for Shared Economic Prosperity (LISEP) calculates a true unemployment rate of 24.3 percent, factoring in those stuck in low-wage jobs or unable to secure full-time work.
Millions of Americans are struggling to make ends meet. LISEP defines functional unemployment as affecting those earning less than $25,000 annually before taxes, a threshold far below what is needed for financial stability. The gap between official statistics and real-world conditions highlights the disconnect between economic reports and everyday life.
Consumer confidence is plummeting. Despite job growth, many workers remain trapped in part-time roles or low-paying positions, unable to secure financial security. The economic opportunity gap continues to widen, leaving millions behind.
Sources:
https://finance.yahoo.com/news/nearly-25-americans-now-functionally-170000849.html
https://san.com/cc/nearly-25-of-americans-functionally-unemployed-despite-low-unemployment/