By Stacy M. Brown
Black Press USA Senior National Correspondent
Despite federal reports suggesting a stable labor market, new data from the Ludwig Institute for Shared Economic Prosperity (LISEP) reveals a far grimmer reality for American workers—particularly Black and Hispanic Americans. The institute’s April report on the True Rate of Unemployment (TRU)shows a functional unemployment rate of 24.3%, compared to the official Bureau of Labor Statistics (BLS) figure of 4.2%. The numbers mark the third consecutive month that functional unemployment has surpassed 24%, according to LISEP, which defines functional unemployment as the combined total of those without jobs, those unable to secure full-time employment, and those earning poverty-level wages—less than $20,000 per year adjusted for inflation. “We are facing a job market where nearly one in four workers are functionally unemployed, and current trends show little sign of improvement,” said LISEP Chair Gene Ludwig. “The harsh reality is that far too many Americans are still struggling to make ends meet.”
Racial and gender disparities remain wide. Black workers saw a 1.4 percentage point increase in their TRU to 26.7%, while White workers experienced a slight decrease to 23%. The rate for Hispanic workers climbed to 28.2%, maintaining the highest among reported groups. A persistent gender gap also emerged in the data: functional unemployment for men rose to 20%, while women—though showing a slight improvement—still face a significantly higher rate at 28.6%. Beyond labor force disparities, BLS statistics further indicate a disproportionate impact on Black Americans. The unemployment rate for Black men remains at 6.3%, more than double that of White men. Meanwhile, since September, approximately 181,000 Black women have dropped out of the labor force entirely, even as participation rates among women of other racial groups have increased. The origins of this exodus stretch back to 2020 when millions of working mothers—particularly women of color—left the workforce amid the collapse of childcare infrastructure during the COVID-19 pandemic. Many have yet to return due to ongoing issues with affordability and accessibility.
LISEP’s white paper, “Measuring Better,” outlines significant flaws in headline economic indicators such as GDP and BLS unemployment rates, labeling them misleading and outdated. Instead, LISEP advocates for measures that reflect the lived economic realities of most Americans—particularly those in working- and middle-class communities that have long been left behind by policy and prosperity. According to the paper, the methodology behind TRU includes only those working full-time and earning above poverty wages as “employed.” It excludes part-time workers who would prefer full-time employment and those earning less than $20,000 per year. This approach, LISEP argues, provides policymakers with a more accurate understanding of economic well-being and informs better decision-making for resource allocation. “The public would be well served by a commitment from economic policymakers to adopt a stable course of action, based on real-world metrics, that better serves the interests of working Americans,” Ludwig said.