Enter the Functionally Unemployed

Economists say that the economy is doing great, but they have not walked in our shoes.  You need only read a blog post by an economist to know that they inhabit a world that bears no resemblance to ours; it is no wonder that professional economists are among the most likely of all occupations to say that they never want to retire.  In the real world, most of us are struggling to make ends meet, and often failing in that pursuit, even those of us who have ostensibly professional jobs where we might encounter a professional economist in the flesh.  The adage that has been going around online for the past few years, the one that says that households with an income of $100,000 per year are living paycheck to paycheck, does not do justice to our plight.  At this point, if we were able to live paycheck to paycheck, we would rejoice.  Every month, our credit card balances get higher.  Eventually, we get to the point where our credit card maxes out every month when they add the interest charges, and every month we pay the minimum payment, and then the next month, the cycle repeats.  Once we are out of credit on our credit cards, we spread ourselves increasingly thin with buy now pay later (BNPL) payments.  Finally, a journalist put a name on our situation; we are functionally unemployed.  To find out more about your debt relief options if you work but don’t own enough money to pay down your debts, contact a Miami debt lawyer.

How to Tell If You Are Functionally Unemployed

The official reports say that 4.2 percent of Americans between the ages of 18 and 65, not including full-time students, are unemployed, but this figure does not tell the whole story.  It only counts people who have no employment income, but they represent only a small fraction of people who are financially distressed.  A recent report by the Ludwig Institute for Shared Economic Prosperity (LISEP) categorizes 24 percent of working age American adults as functionally unemployed.  This means that they earn employment income, but it is not enough to cover their expenses, even when those expenses only include necessities like groceries, housing, and utilities.

The most fortunate of the functionally unemployed are full-time employees but their wages are low relative to the cost of living in their areas.  They may not have any money in the bank, but they have employer-provided health insurance, and they pay lower taxes than gig workers.  Other functionally underemployed people are stuck in part-time jobs with unpredictable schedules, making it difficult to make much money from outside sources such as gigs.  The least fortunate of the functionally underemployed are the gig workers whose employers classify them as self-employed independent contractors, leaving them responsible for paying their Medicare and Social Security taxes out of their take-home pay.

Work With a Debt Lawyer About Debt Relief Options for the Functionally Unemployed

A South Florida debt lawyer can help you if you are sinking deeper into debt despite working more than 40 hours per week.  Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.

Source:

cbsnews.com/news/cost-of-living-income-quality-of-life/