While official headlines continue to boast a strong economy, the reality for many Americans tells a very different story — one that has serious implications for retirees and anyone relying on fixed income.
Beneath the surface of April’s upbeat job report lies a worrying truth: cracks are forming in the labor market, inflation remains sticky, and the risk of a stock market correction is rising. That’s why many investors are looking beyond Wall Street — and turning to physical gold.
The Bureau of Labor Statistics (BLS) reported that the U.S. added 177,000 jobs in April 2025, with unemployment holding steady at 4.2%, near a 50-year low. But according to the Ludwig Institute for Shared Economic Prosperity (LISEP), the “true” unemployment rate was a staggering 24.3%.
That number — called the True Rate of Unemployment (TRU) — captures not just the unemployed, but the underemployed, those earning poverty wages, and people who can’t find full-time work.
“We are facing a job market where nearly one-in-four workers are functionally unemployed, and current trends show little sign of improvement,” said LISEP Chair Gene Ludwig. “The harsh reality is that far too many Americans are still struggling to make ends meet.”
For retirees, this points to a fundamental problem: an economy that looks solid on paper may be far more fragile in reality. As uncertainty increases and traditional investments face volatility, having a portion of wealth in tangible assets like gold becomes more than just wise — it becomes essential.
So why the massive 20-point difference between the government’s unemployment rate and LISEP’s? The answer lies in how the data is defined and who gets counted. The Bureau of Labor Statistics (BLS) only considers someone unemployed if they’ve actively looked for work in the previous four weeks. This excludes millions who want jobs but haven’t recently applied or are temporarily unavailable.
This discrepancy helps explain a growing disconnect between strong employment numbers and declining consumer confidence. Despite job gains, millions of Americans remain stuck in low-paying, unstable or part-time jobs without benefits. At the same time, prices are rising, the housing market is cooling, and credit delinquencies are on the rise.
“Amid an already uncertain economic outlook, the rise in functional unemployment is a concerning development,” Ludwig added. “This uncertainty comes at a price, and unfortunately, the low- and middle-income wage earners ultimately end up paying the bill.”
While the government’s data isn’t technically wrong, Ludwig argues it’s misleading if taken at face value. LISEP believes policymakers and the public would be better served by tracking functional unemployment as well, to better understand and address labor market gaps.
What You Can Do
If you’re nearing retirement — or already there — protecting your savings against economic instability is more important than ever. While the market may still be riding high, it only takes one shock to send portfolios sliding. And with functional unemployment on the rise, inflation still biting, and policymakers divided on solutions, caution is warranted.
Why Gold Still Makes Sense
For those looking to protect their savings in uncertain times, gold offers a proven hedge. It doesn’t rely on job markets or wage growth. It’s not tied to policy decisions or political spin. And it has a centuries-long track record of holding value when confidence in traditional systems falters. As job data becomes harder to trust and economic inequality deepens, many investors are turning to gold — not as a gamble, but as a shield.
At Reagan Gold Group, we help individuals preserve their wealth with IRS-approved physical gold and silver IRAs, as well as direct delivery options. When economic data confuses and confidence wavers, gold remains a safe and tangible solution.
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