Phoenix's true 2023 unemployment rate was about 22%

Note: Share of the U.S. labor force that is functionally unemployed (seeking but unable to find a full-time job, is unemployed or is employed in a position earning less than a living wage); Data: Ludwig Institute for Shared Economic Prosperity; Chart: Axios Visuals

Phoenix's true unemployment rate last year was 21.9%, compared with its official rate of 3.5%, according to a study from the Ludwig Institute for Shared Economic Prosperity (LISEP).

Why it matters: Phoenix has enjoyed a rosy unemployment picture in the past few years, but a more nuanced look at the region's workforce data reveals a larger chunk of individuals who can't find a living wage job .

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How it works: The think tank's proprietary system — its True Rate of Unemployment — measures the proportion of workers looking for and unable to find a full-time job that pays more than $25,000 per year.

Between the lines: The true rate tends to be much higher than the U.S. Bureau of Labor Statistics (BLS) rate.

• That's because LISEP counts as unemployed anybody earning less than $25,000 per year, a group BLS excludes.
• BLS, unlike LISEP, also excludes anybody who has stopped looking for work or is discouraged by a lack of jobs or the demands of child care.

Zoom out: Phoenix's true unemployment rate is about 1 percentage point lower than the national rate but is higher than that of many major metros, including Denver (16%), San Jose (18%), Washington (18%) and Minneapolis (19%).

What we're watching: Seven companies reported layoffs totaling 1,979 Arizona-based jobs last month, up from just 267 position cuts in April 2023, the Arizona Republic reported .