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Fresno and Bakersfield continue to rank among the top metro areas with the highest rates of “functional unemployment” in the country, according to a report from the Ludwig Institute for Shared Economic Prosperity (LISEP) released Wednesday.

LISEP, founded in 2019 by Gene and Carol Ludwig, develops alternative economic indicators aimed at providing a clearer picture of financial conditions for working- and middle-class Americans.

The 2024 True Rate of Unemployment (TRU) by Metropolitan Statistical Area measures not only unemployment but also those working involuntarily part-time or earning below $25,000 annually, adjusted for inflation. The analysis covers the country’s 100 most populous metro areas.

Bakersfield posted the largest year-over-year increase in functional unemployment, rising 9.7 percentage points to 32.5%, the third highest among all metros.

Fresno’s TRU improved by 4.2 percentage points, ranking as the sixth best improvement, but still finished as the 12th highest overall with a rate of 28.4%.

LISEP attributes the high rates in Fresno and Bakersfield to structural issues, including a reliance on low-wage seasonal workers in agricultural jobs and low education attainment.

Farm workers account for more than 11% of Fresno’s total employment and over 16% for Bakersfield. Additionally, 22% of Fresno adults 25 and older and 24% in Bakersfield don’t have a high school diploma, compared to 10% nationwide.

Only Tucson, Arizona, and McAllen-Edinburg-Mission, Texas, ranked lower than Bakersfield. McAllen posted the nation’s highest TRU at 45.9%.

On the other end of the spectrum, Madison, Wisconsin, had the lowest functional unemployment rate at 16.1%, followed by Nashville, Washington D.C., San Jose, Raleigh and Des Moines.

“What our analysis consistently reveals is a stark contrast in economic realities across local communities nationwide,” said LISEP Chairman Gene Ludwig in a news release. “Breaking the U.S. economy down into individual, local economies helps us identify these challenges.”