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.
Gender gap narrows as female TRU falls 1.6 points to 29.4%
The TRU for women dropped 1.6 percentage points to 29.4% in August, reversing a July increase of the same magnitude that had pushed the rate to 31.0%. The TRU for men edged up 0.1 percentage points to 19.6%.
Racial disparities persist as Hispanic and Black rates diverge slightly
The TRU for Hispanic workers rose 0.4 percentage points to 27.1%, while the rate for Black workers fell 0.1 percentage points to 27.2%. Functional unemployment among White workers increased 0.2 percentage points to 24.0%, leaving racial gaps largely unchanged month over month.
LISEP chairman flags need for sustained, broad-based improvement
LISEP Chairman Gene Ludwig said the coming months would clarify whether the August improvement holds. "What matters now is whether that improvement continues and, ultimately, whether more Americans are able to find the kind of work that provides real economic security for themselves and their families," Ludwig said. He added that LISEP will monitor whether gains extend across demographic groups, noting the decline for women was encouraging even as racial-group figures moved little.