A quarter of Americans do not have a permanent job.
Almost 25% of Americans are functionally unemployed, study shows. What is functional unemployment and why is it growing, explains Fox5.
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According to a report by the Ludwig Institute for Shared Economic Prosperity (LISEP), the functional unemployment rate has increased and has been above 24% for three months in a row.
LISEP found that the proportion of the U.S. labor force who were functionally unemployed was 24,3% in April.
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Those rates rose to be highest among Hispanic Americans (28,2%) and African Americans (26,7%), while white workers saw a slight decline, from 23,1% to 23%.
By gender, the level of functional unemployment was also higher among women (28,6%) than among men (20%).
According to a recent True Rate of Unemployment (TRU) report, functionally unemployed people are those who are either not working full-time (35+ hours per week) but are working toward it, or are unemployed or not earning a living wage, which is conservatively estimated at $25 per year before taxes.
“We are facing a labor market where nearly one in four workers is functionally unemployed, and current trends show no signs of improving,” said LISEP Chairman Gene Ludwig. “The harsh reality is that too many Americans continue to struggle to survive financially, and unless enough stable, good-paying jobs become available, the gap in access to economic opportunity will only grow.”
The U.S. economy added jobs in May, but at a slower pace than in the previous two months, as uncertainty over trade, tax and monetary policies prompted employers to cut back on hiring.
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The Labor Department reported last week that employers added 139 jobs in May, slightly above the 000 expected by economists surveyed by LSEG, though below initial figures for April (130) and March (000).
The latest figures put the official unemployment rate at 4,2%, consistent with the figures for the previous two months and in line with LSEG forecasts.
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