What Is the Unemployment Percentage?

The U.S. unemployment rate as of June 2025 is 4.1%. While suggesting a stable job market; the reality is more complicated. Millions of people are working jobs that don't cover basic expenses, are stuck in part-time roles they didn't choose, or have stopped applying altogether. Recent reports indicate that college graduates are facing rising joblessness, hiring in white-collar industries is slowing, and the labor force is shrinking, not expanding. These trends affect more than just income —they can impact your ability to get approved for housing, credit, or even a new job. While the job search may be unpredictable, your credit doesn't have to be. With options like Cheers Credit Builder, you can still make progress financially by building credit history through consistent monthly payments, even during career uncertainty.

The Official Number-and What It Misses

So, what is the unemployment percentage? As of June 2025, the U.S. unemployment rate sits at 4.1%, according to the Bureau of Labor Statistics. That figure reflects the portion of people who don't have a job but are actively looking for one.

It's a significant number. But it's also just part of the picture.

A report from the Ludwig Institute for Shared Economic Prosperity estimates that nearly 1 in 4 working-age adults in the U.S. is functionally unemployed. That means they're either out of work, underemployed, or working jobs that don't cover basic living costs. These folks aren't always counted in the headline unemployment rate, but their struggles are very real.

Where the Numbers Stand Today

• June 2025 Unemployment Rate: 4.1%
• Jobs Added in June: 147,000
• Unemployment Among College Grads (22-27): 5.8%
• Long-Term Average Unemployment Rate: 5.67%
• U.S. Youth Unemployment Rate: Typically 2x higher than the national average

While 4.1% sounds like a win, recent reports indicate that job growth is slowing. The reason unemployment dipped slightly in June was not because more people got hired-it's because fewer people were looking. That's a red flag.

Why It Feels Like More People Are Out of Work

Even with a 4.1% unemployment rate, many people don't feel that the job market is working in their favor. That's because the official number doesn't include everyone who's struggling. If you've stopped looking for work, taken part-time gigs while searching for something better, or are earning less than what's needed to cover basic costs, you may not be counted in the total. Young workers, especially recent college graduates, are facing higher-than-average unemployment rates. Gig workers and undocumented individuals often fall through the cracks of traditional data collection. Underemployment—where people work jobs that don't match their qualifications or earning potential—is increasingly common but not reflected in headline statistics. These gaps create a disconnect between government numbers and lived experiences.

What This Means For You

If you're unemployed, underpaid, or trying to rebuild from job loss, that 4.1% number doesn't help much. What matters is what you do next.

Getting back on track financially takes more than just landing a job. Many people are trying to rebuild their credit history while dealing with late bills, lost income, or inconsistent work. That's where Cheers Credit Builder comes in.

A Credit Solution That Doesn't Wait on a Job Offer

When work is inconsistent or job offers aren't forthcoming, building credit may seem out of reach. That's where Cheers Credit Builder comes in. It's not a traditional loan-it's a credit-building account that helps you establish payment history and grow savings at the same time. There's no credit check required, and users choose a monthly plan that fits their budget. Payments are stored in an FDIC-insured account, and once the plan ends, the money is returned minus interest. Cheers reports those payments to all three major credit bureaus, starting after your first one. It's a straightforward way to take control of your financial progress, even when your income is unstable.

Why Credit Still Matters, Even When You're Job Searching

Job hunting often comes with financial strain, but your credit score doesn't have to suffer in the process. Good credit can open doors to more than just loans-it plays a role in apartment applications, car insurance rates, and sometimes even hiring decisions. Keeping your credit active while unemployed helps protect your options for the future. That's what makes Cheers useful-it gives you a way to demonstrate consistent, on-time payments and build credit history without needing a credit card or full-time income. It's one of the few things you can keep building while the rest of life feels uncertain.

Looking Ahead: What Happens If Unemployment Rises?

Economists expect the labor market to cool slightly in late 2025, with unemployment projected to remain between 4.0% and 4.8%. However, structural shifts—such as AI automation, shifting immigration policy, and ongoing trade issues—could push specific industries into more challenging territory.

Staying financially ready doesn't mean predicting the future. It means preparing for it.

Ready to Start?

The official unemployment percentage gives you the headline. But your experience tells the real story. If you're working toward financial stability, Cheers is here to help make that possible, even before the next job offer arrives. Start building your credit today, without fees, a credit check, or waiting.

Cheers is not a bank. Deposit accounts are held by Sunrise Bank, Member FDIC.