economic_policy

US Functional Unemployment Eases to 24.3% in August, LISEP Says

US Functional Unemployment Eases to 24.3% in August, LISEP Says

Washington, D.C. – September 25, 2026 -- The Ludwig Institute for Shared Economic Prosperity (LISEP) reported that its True Rate of Unemployment (TRU) fell 0.6 percentage points in August to 24.3%, down from 24.9% in July, partially reversing a four-month climb that began in March. The August reading still sits above January's 23.9%, following a 1.3-point rise between March and July. By contrast, the U.S. Bureau of Labor Statistics headline unemployment rate held steady at 4.1% in August.

TRU Out of Population measure drops to 53.2%, tracking labor force participation gains

LISEP's TRU Out of the Population (TRU OOP)—which captures the share of the working-age population not functionally employed, including those who have exited the labor force—declined 0.6 percentage points to 53.2%. LISEP said the move aligns with the BLS-reported improvement in labor force participation.

KfW Study: Germany Can Lift Potential Growth Above 1% Annually

Frankfurt am Main – September 11, 2026 -- Germany has a realistic chance of restoring potential economic growth to more than 1% annually over the coming decade, according to a new KfW Research study, up from a rate that has slipped to barely above zero after standing near 2% in 2015.

KfW ties growth recovery to labor, capital and productivity gains

The study, titled "Standort Zukunft. Wie Deutschland zu neuer Stärke und Wachstum findet," identifies productivity as the most critical lever for reversing more than a decade of stagnation. KfW CEO Stefan Wintels and Chief Economist Dirk Schumacher presented the findings alongside a twelve-point policy paper in Frankfurt.