HONOLULU (KHON2) — In May 2025, the monthly employment analysis report gathered by LISEP (the Ludwig Institute for Shared Economic Prosperity) was published. It shared some important news about jobs in the United States, including Hawaiʻi.
The report said the real unemployment rate is much higher than what the government usually reports. LISEP called this the True Rate of Unemployment (TRU); and in May, it was 24.3%.
That means nearly one in four people in the labor force are “functionally unemployed”. But what does that mean? According to LISEP, it includes:
- People who don’t have jobs but want one,
- People who only have part-time jobs but want to work full-time (35 hours or more) and
- People who do have jobs, but don’t make enough money to live on based on the cost of living.
This is different from the number we usually hear in the news. The U.S. government said the unemployment rate in May 2025 was only 4.2%. The Hawaiʻi Bureau of Labor Statistics indicated that in May 2025, Hawaiʻi unemployment rate is holding at 2.8%.
These numbers only count people who are out of work and actively looking for a job. It doesn’t count people who are underpaid or underemployed.
LISEP believes their number gives a more accurate picture of how people are really doing.
Who is most affected?
The data also shows that some groups are struggling more than others:
- Women: 29.9% are functionally unemployed.
- Men: 19.3%.
- Black Americans: 26.0%.
- Hispanic/Latinx Americans: 27.3%.
- White Americans: 23.6%.
Education also matters:
- People without a high school diploma: 50.1% are functionally unemployed.
- People with just a high school diploma: 28.3%.
- People with a bachelor’s degree: 16.3%.
- People with an advanced degree (like a master’s or doctorate): 13.9%.
You can click here to read the full report.
Even though the news indicates unemployment is low, many Americans still don’t have full-time, good-paying jobs. LISEP’s True Rate of Unemployment helps us see the bigger picture.