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Understanding Functional Unemployment in 2025—Why Is It Important?

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Unemployment numbers are a good indication of the state of a country’s economy and its people, but traditional calculations can be a little misleading. New statistics regarding “functional employment” within the US in 2025 paint a more clear and far more concerning picture. A recent report from the Ludwig Institute for Shared Economic Prosperity (LISEP) showed that the true rate of employment stood at 24.3% in April, as opposed to the 4.2% unemployment level stated by the U.S. Bureau of Labor

Statistics. Does this mean the Labor Bureau made an incorrect estimate? Not necessarily. The metrics used by the two

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