True U.S. Unemployment Is 24.9%, Not 4.1%: LISEP's New Measure
True Rate of Unemployment
The Ludwig Institute for Shared Economic Prosperity (LISEP) reports that the True Rate of Unemployment (TRU) hit 24.9% in July 2026, far above the official 4.1% headline rate. TRU counts as functionally unemployed anyone who lacks a full-time job (35+ hours) but wants one, has no job, or earns below a living wage (conservatively $26,000 annually in 2025 dollars). The rate has risen for four consecutive months, with stark disparities: 31.0% for women vs. 19.5% for men, and 50.3% for those without a high school diploma vs. 12.8% for advanced degree holders.
The functional unemployment rate increased 0.2 percentage points in July, the fourth consecutive monthly increase.
- afpx
Tangential question: how do you actually find and hire people?
I have a decent amount of disposable income [1], and I often want to pay people to help with things I’m not particularly skilled at. The problem is that I have no idea how to reliably find the right person or even how to structure the arrangement once I do.
I have lots of examples, but here’s a recent one. A device failed, and replacing it would have cost about $1,000. I watched some videos to see whether I could repair it myself, then spent probably ten hours researching and tinkering with it. I even bought some equipment. It was fun, but after I came close to bricking the thing, I eventually shelved it. Since I rarely use it anyway, it joined my ever-growing list of projects I’ll get back to someday.
The first problem was discovery: how do you find someone with a niche skill who is actually interested in doing a relatively small job?
The second problem was trust. I’ve been burned before by hiring companies based on Internet reviews. A lot of businesses seem to optimize for low-cost labor and throughput. The person who actually shows up has little incentive to care about quality, craftsmanship, or attention to detail.
The third problem was knowledge transfer. Even if I found the right person, explaining the problem and exactly what I wanted might take half as much effort as just doing the work myself.
And this isn’t really a new problem. Funny enough, in the 1990s I built supply chain sourcing systems. Essentiall […]
- floro
Everyone knows the stats are false but I don't know an alternative.
I've been unemployed after graduating for a year and because I didn't use unemployment benefits I didn't show up in the statistics in switzerland. I know many cases like mine.
- stuaxo
A huge demonstration of why we need to move from a 5 day working week.
Some of the gains that have gone to the top need to be paid to spread the work over more people, a 4 day week would be a start.
- runako
Anybody who believes ~30% of the workforce was functionally unemployed in 1999 does not know what those words mean, or was not an adult in 1999.
I get what they are trying to convey, but the stronger message is the more straightforward: there are too many jobs that do not pay enough to live on.
- xelxebar
From a cursory read of their white paper, my impression is that LISEP is trying to quantify the sense that making a livable income is harder and more disparate than it used to be. IMHO, this should be read as a campaign to improve and add precision to a political narrative more than an indictment of existing statistics.
In particular, the BLS in the US reports 6 different measures of unemployment, U-1 through U-6, each measuring something slightly different. LISEP adds another to the bunch; this is their operationalization:
> LISEP’s definition of “True” employment or unemployment accepts the U-3 rate for comparison purposes, but modifies it by adopting two important stipulations. The first stipulation deals with the workweek. To be employed for the purposes of LISEP’s true employment concept, an individual must either have a full-time job (35+ hours per week) or have a part-time job but no desire to be full-time (e.g., students). The second stipulation is that an individual must earn at least $20,000 annually. This annual wage is adjusted for inflation, calculated in January 2020 dollars.
The white paper gives their rationale for the $20,000 cutoff. The "true" name here is marketing, which might honestly be the right play here. My gut says that we already have better statistics than TRU but they smell dry and academic. I would be interested to hear more about their political strategy and philosophy.
FWIW, the institute looks to be chaired by https://en.wikipedia.org/wiki/Eug […]
- annzabelle
I have to wonder how much of this is "would like a full time job but has a part time job paying over 26k." Because of mandatory benefits (such as health insurance) for full time workers, a lot of companies only hire part time workers, but often people are making a living wage from those jobs. I'm not sure if a bartender making $50k+ (including untaxed tips) working 32.5 hours a week should count as unemployed.
- ElProlactin
> ...or does not earn a living wage, conservatively pegged at $26,000 (in 2025 dollars) annually before taxes.
I couldn't easily tell how they decided on a $26,000 "living wage" figure but in most of the US, even double that is not Easy Street.
The "True Rate of Barely Getting By" is ridiculously high in the US from what I can gather.
- j16sdiz
Looking at the "True Rate" vs "Headline Rate" graph....
The "Headline Rate" seems to be a good proxy for the "True Rate".
As long as we are not comparing them in the absolute term, what's the problem?