San Francisco’s Unseen Economic Reality: True Unemployment Rate at 22%

San Francisco, renowned for its dynamic economy and technological innovation, is facing a stark reality that belies its glossy exterior. The official unemployment rate, a seemingly low 4.2%, masks a more troubling economic issue: a significant portion of the city’s population is struggling to find full-time employment that pays a living wage.

The Ludwig Institute for Shared Economic Prosperity (LISEP) has brought this issue to light, revealing a “true unemployment” rate of 22%—a figure that includes those who are underemployed or unable to secure employment that provides a living wage, defined as an annual income of $25,000 or more.This “true unemployment” rate offers a more accurate reflection of the labour market, especially when compared to the federal Bureau of Labor Statistics (BLS) methodology, which does not consider individuals earning minimal income or those who have stopped looking for work due to various discouragements, including the lack of job opportunities or childcare responsibilities.

LISEP’s assessment, therefore, presents a more nuanced picture of the city’s economic health, one that acknowledges the challenges faced by many San Franciscans who are willing to work but are unable to find suitable employment.The implications of this disparity are far-reaching, affecting not just the individuals and families struggling to make ends meet, but also the socio-economic landscape of San Francisco.

It is a reminder that behind the facade of prosperity, there is a hidden struggle for economic stability that impacts a significant segment of the city’s population. This revelation calls for a reevaluation of the metrics used to gauge economic success and a concerted effort to address the underlying issues of income inequality and job availability in urban centres like San Francisco.