May 7, 2024 - News
San Francisco's true unemployment rate
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San Francisco's "true unemployment" rate last year was 22%, compared to its official rate of 4.2%, according to data from the Ludwig Institute for Shared Economic Prosperity (LISEP).
Why it matters: The new dataset highlights the true spectrum of inequality in major metro areas, capturing anyone who wants to but cannot find a full-time job with a living wage.
How it works: The think tank's proprietary system measures the proportion of workers looking for a full-time job that pays a living wage — and who are unable to find one.
- LISEP's unemployment rates tend to be higher than the federal Bureau of Labor Statistics' rates because the BLS rate excludes people who might be earning only a few dollars a week. LISEP, by contrast, counts as unemployed anybody earning less than $25,000 per year.
- The BLS, unlike LISEP, also excludes anybody who has stopped looking for work or is discouraged by a lack of jobs or the demands of child care.