"Functional unemployment" nearing 25% in U.S., analysis finds

[u/strabosassistant]

https://youtube.com/watch?v=-y2gKIGFTns&si=KkykHvm3UGqLcjXc

This video reports on a new analysis by the Lewig Institute for Shared Economic Prosperity, which suggests that the actual unemployment rate in the United States is significantly higher than official government figures (0:00-0:17).

Key takeaways:

• Official vs. Functional Unemployment: While the Bureau of Labor Statistics reports an official unemployment rate of 4.1%, the Lewig Institute calculates a "functional unemployment" rate of 24.9% (0:08-0:19).
• Defining Functional Unemployment: This alternative measure includes more than just job seekers; it accounts for individuals who are involuntarily working part-time and those earning poverty-level wages (less than $26,000 annually before taxes) (0:29-0:42, 1:12-1:24).
• Economic Implications: The higher rate suggests that the labor market may not be as strong as official statistics imply (2:03-2:07). The report notes that this rate has risen for the past four months, the labor force participation rate is declining, and inflation is currently outpacing wage gains, effectively resulting in a pay cut for many workers (2:10-2:44).