The LISEP True Rate of Unemployment stands near 25%. Unlike the traditional BLS unemployment rate, which was 4.1% in August, the LISEP measure captures a broader definition of labor market weakness by including workers who are functionally unemployed, such as those working part-time involuntarily or earning poverty-level wages. While the LISEP rate reached 24.9% in July, it remains below its historical average, pointing to a surprisingly healthy labor market despite the broader measure of unemployment. This is also an important argument for optimism surrounding AI with the labor market remaining resilient, suggesting that AI may not eliminate as many jobs, or as quickly, as many initially feared.
Source: LISEP
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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