Rising “functional unemployment” highlights a troubling new trend in the labour market
The current labor market appears to be strong on the surface, but there are major problems lurking beneath it.
According to recent jobs, the unemployment rate is still low at 4.2%, with 4.2%, wage growth still remains stable, with the US adding a relatively healthy 139,000 roles in May. Report From the Labor Statistics Bureau. However, a new report shows that more and more Americans are “functionally unemployed.”
It is a term that describes people who are not included in the top-line unemployment numbers, but still struggling in the labour market. These include those who are unemployed but have stopped searching for jobs, and those who are employed but earn annual salaries of less than $25,000 a year.
Currently, around 24.3% of Americans fall into that category. Report From the Ludwig Institute for Shared Economic Prosperity (LISEP), a nonprofit focused on economic and policy research. That’s from about 22.3% two years ago.
“We are facing a job market where almost one four workers are functionally unemployed, and the current trends show little signs of improvement.” press release. “The harsh reality is that too many Americans are still struggling to achieve their goals and there is no influx of reliable, well-paid jobs, which widens the gap in economic opportunity.”
Alternative indicators such as “functional unemployment” may help to partially explain why many workers are currently depressed about the economy. 1 Recent Reports For example, we found that employee trust among entry-level workers is historically low from the employment platform Glassdoor. Traditional unemployment rates are still modest, but the labor market has been cold for several years and how employees are looking carefully Customs and AI It will affect their future employment outlook.
“In the already uncertain economic outlook, the rise in functional unemployment is about development,” Ludwig said.
Britt Morse
brit.morse@fortune.com
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