Ludwig Institute Reports Slight Q3 Wage Growth and Decreasing Functional Unemployment
The Ludwig Institute for Shared Economic Prosperity (LISEP) reported that functional unemployment decreased for the second consecutive month in September, falling to 24%. Additionally, inflation-adjusted median weekly earnings saw a slight quarter-over-quarter increase of 0.6%, rising from $1,035 to $1,041. These metrics include part-time and underemployed workers, providing a broader view than standard Bureau of Labor Statistics (BLS) data. However, the report highlights significant demographic disparities. While Hispanic workers saw strong wage gains, Black workers experienced a decline in wages and a sharp increase in functional unemployment, which rose to 30.1%. The gender pay gap also showed signs of narrowing, with women's earnings increasing by 1.5% during the quarter. Despite these marginal improvements, LISEP Chair Gene Ludwig noted that wage growth has struggled to outpace the cost of living for many Americans.
Topics: economic inequality labor statistics median weekly earnings unemployment rate