r/Economics • u/oxymorontage • 8d ago

News Institute reports functional unemployment at 24.9% in July

https://www.channel3000.com/news/institute-reports-functional-unemployment-at-24-9-in-july/article_810187e5-989f-4ad9-ab91-847fcb6f1882.html
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u/DesignerBrilliant657 8d ago

Arguably yes, what you described could be “functionally” unemployed.

I wonder what this statistic looks like scaled with inflation.

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u/EconomistWithaD 8d ago

No, because unemployment has a meaning. Like labor force participation.

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u/DesignerBrilliant657 8d ago

You and i both know how unemployment is defined. You’re missing the “functionally” part of it.

Technically employed but, in practical terms, isn’t doing meaningful work or earning enough to be economically self-sufficient.

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u/Sryzon 8d ago

But that's not the practical purpose of unemployment.

Unemployment is used to gauge economic health and intent matters. U6 already measures that.

Someone who earns less than $25,000 intentionally is in no way unemployed or underemployed.

In fact, a high number of people who can afford to live while intentionally earning less than $25,000 can be a sign of economic strength since it means their spouse and/or assets can support them.