While official government statistics continue to paint a relatively stable picture of the job market, a deeper look reveals a far more troubling reality for millions of Americans. According to the latest report from the Ludwig Institute for Shared Economic Prosperity (LISEP), functional unemployment—a broader and more accurate measure of labor market health—has quietly surged past 24% for the third consecutive month.
LISEP’s April True Rate of Unemployment (TRU) shows the growing gap between what the numbers say and what working Americans actually feel. The TRU, which includes not just the unemployed but also those unable to find full-time work or stuck in low-wage jobs, rose from 24% to 24.3%—despite the Bureau of Labor Statistics (BLS) holding steady at a reported 4.2% unemployment rate. This disconnect is alarming and reveals the depth of underemployment that continues to plague much of the workforce.
“We are facing a job market where nearly one in four workers are functionally unemployed,” says LISEP Chair Gene Ludwig, “and current trends show little sign of improvement. Far too many Americans are still struggling to make ends meet.”
The breakdown of LISEP’s data paints an even starker picture by demographic. Black workers saw their TRU rise to 26.7%, while Hispanic workers continue to experience the highest rate overall at 28.2%. Though the rate for White workers fell slightly to 23%, the gender divide remains wide. Men experienced a 1.2 percentage point increase to 20%, while women, despite a small decline to 28.6%, remain the most impacted group by far.
What does this all mean? Simply put, despite surface-level employment stability, the reality for nearly a quarter of the American workforce is one of insecurity, underpayment, and part-time desperation. As Ludwig notes, without a substantial infusion of meaningful work and career opportunities, the economic opportunity gap will only continue to grow.
Filling the Gap with a Smarter Solution
For many caught in the gray zone between underemployment and full economic stability, the answer doesn’t always lie in another job application—but rather in a new approach to earning. One increasingly attractive option is launching a home-based business as a freelance factoring broker or commercial finance consultant.
Factoring brokers help small businesses improve cash flow by connecting them with reputable factoring companies that purchase outstanding invoices. As an independent agent or referrer, you can earn residual monthly commission income for each client you help place—often with no license, expensive certification, or formal finance background required.
What makes this career path so compelling in today’s economic climate?
- Low startup costs – Most brokers can launch their business with little more than a website and training from programs like IACFB’s PALs system.
- Flexibility – Perfect for part-time hours or side-income while holding another job.
- Local presence matters – Face-to-face trust is still king in finance, which means AI can’t replace you.
- Real impact – You’re helping small businesses in your community survive and thrive.
For both men and women—especially those with administrative, sales, customer service, or entrepreneurial experience—factoring offers a rare path to meaningful, scalable income without traditional employment constraints. And in a labor market where one in four Americans is functionally unemployed, that’s a path worth exploring.
Want to learn more? Start your journey at IACFB’s Factoring Broker Boot Camp, a low-cost training program that gets you earning commissions in weeks, not months. It’s time to stop waiting for opportunity—and start building one.