The Ludwig Institute for Shared Economic Prosperity (LISEP) said its July True Rate of Unemployment (TRU), which includes jobless workers, involuntarily part-time workers and people earning poverty wages, stood at 24.9%. The measure rose for a fourth consecutive month and was up 1.3 percentage points since March, although it remained below the December peak of 25.2%. By contrast, the U.S. headline unemployment rate fell 0.1 percentage point to 4.1%. LISEP Chairman Gene Ludwig said the divergence could signal a weakening labor market if functional unemployment continues to rise while workforce participation declines. Employers unexpectedly cut 23,000 jobs in July, while consumer prices rose 3.4% year over year and wages increased 3.2%, leaving pay growth behind inflation. EY-Parthenon chief economist Gregory Daco cautioned that alternative measures such as TRU should not be given excessive weight, but said moderating wage growth and income growth near zero after inflation could constrain consumer spending, which accounts for about two-thirds of U.S. economic activity.