US Functional Unemployment Eases to 24.3% in August, LISEP Says
Washington, D.C. – September 24, 2026 -- The Ludwig Institute for Shared Economic Prosperity (LISEP) reported that its True Rate of Unemployment (TRU) fell 0.6 percentage points in August to 24.3%, down from 24.9% in July, partially reversing a four-month climb that began in March. The August reading still sits above January's 23.9%, following a 1.3-point rise between March and July. By contrast, the U.S. Bureau of Labor Statistics headline unemployment rate held steady at 4.1% in August.
TRU Out of Population measure drops to 53.2%, tracking labor force participation gains
LISEP's TRU Out of the Population (TRU OOP)—which captures the share of the working-age population not functionally employed, including those who have exited the labor force—declined 0.6 percentage points to 53.2%. LISEP said the move aligns with the BLS-reported improvement in labor force participation.