The current labor market seems strong on the surface, but the problems lurking below are huge.
Unemployment remains low at 4.2%, wage growth is steady, and the U.S. added a relatively healthy 139,000 roles in May Report From the Bureau of Labor Statistics. But, according to a new report, more and more Americans are “functionally unemployed.”
This term describes people who are not included in the highest number of unemployed people but are still struggling in the labor market. These include those who are unemployed but stop looking for jobs and those who are employed, but earn less than $25,000 a year.
According to A, about 24.3% of Americans fall into this category Report From the Ludwig Institute for Sharing Economy Prosperity (LISEP), a nonprofit organization dedicated to economic and policy research. This was about 22.3% two years ago.
“We are facing a job market where nearly four quarters of workers are functionally unemployed, and the current trend shows little sign of improvement,” said Lisep Chairman Gene Ludwig. Press release. “The bad reality is that too many Americans are still trying to make ends meet without a lot of reliable, well-paid jobs influx, and the economic opportunity gap will widen.”
Alternative indicators such as “functional unemployment” may help explain why so many workers are now frustrated with the economy. one Recent Reports For example, it was found from employment platform Glassdoor that employee confidence among entry-level workers has reached an all-time low. Traditional unemployment remains modest, but the labor market has cooled down a few years ago, and employees are paying attention to how to view it Tariffs and AI It will affect their future work prospects.
“In an already uncertain economic outlook, growth in functional unemployment is related to development,” Ludwig said.
British
brit.morse@fortune.com
Around the table
The most important HR headlines roundup.
Most U.S. companies believe that the path to success and productivity now involves cutting the workforce. Wall Street Journal
A recent study found that being passionate about your work will help your career, but only if you are a man. Wall Street Journal
To promote higher financial stability, Dallas Cowboys members are able to successfully earn 400% of their salary. The New York Times
Water cooler
Everything you need to know wealth.
Unthinkable salary. Large-scale technology is bombarding jaw-dropping compensation Meta provides $100 million in signing bonuses in the fierce AI talent war. –Beatrice Nolan
Interview skills. Amazon’s AI director said The biggest interview red flag If he thinks someone is not real. -orianna Rosa Royle
Workers struggle. A new report finds The poisonous “triple threat” Pessimism, uncertainty and disconnection in the workplace are reaching key levels. –Beth Greenfield
