The Ludwig Institute for Shared Economic Prosperity (LISEP) reported its True Rate of Unemployment (TRU) reached 24.9% in July, a 0.2 percentage point climb from the previous month. This metric, which accounts for the jobless, those working part-time, and individuals earning poverty-level wages, has risen 1.3 percentage points since March. The contrast with the U.S. Bureau of Labor Statistics' headline rate of 4.1% highlights a widening gap between official job counts and the actual financial health of American households.

Demographic data shows the strain is not distributed evenly. The TRU for women surged 1.6 percentage points to 31%—the highest level since March 2021—while the rate for White workers increased to 23.8%. Conversely, Hispanic workers saw a 1.5 percentage point improvement, and the rate for men dipped to 19.5%. LISEP Chairman Gene Ludwig warned that the simultaneous rise in functional unemployment and decline in workforce participation signals that people are losing access to meaningful economic opportunities. The TRU Out of the Population, which tracks those who have exited the workforce entirely, rose to 53.8%, reflecting a persistent loss of labor engagement.