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Functional unemployment hits 24.9% as jobs fall

8/22/2026

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Story summary
  • Ludwig Institute for Shared Economic Prosperity reported functional unemployment at 24.9% in July.
  • Ludwig Institute's Gene Ludwig said functional unemployment rose for four months while workforce participation fell, indicating a weaker labor market.
  • Employers cut 23,000 jobs in July, below economists' expectations and suggesting a slowdown.
  • EY-Parthenon chief economist Gregory Daco warned that muted 3.2% wage growth, alongside 3.4% CPI rise, limits consumer spending.