Involuntary part-time worker numbers dip to lowest level in 21 years

on Jul9
by | Comments Off on Involuntary part-time worker numbers dip to lowest level in 21 years |

Momo Productions | Digitalvision | Getty Images

The number of Americans who want to work full-time but are forced to work part-time jobs declined in June to its lowest in more than 20 years, according to federal data issued Friday, underscoring the strength of the labor market and the bargaining power of workers.

There were 3.6 million workers “employed part-time for economic reasons” in June, a decline of 707,000 from the prior month, according to the U.S. Department of Labor’s monthly jobs report.

That’s the lowest level since August 2001, according to historical data compiled by the Federal Reserve Bank of St. Louis.

More from Personal Finance:
As prices rise nationwide, how to calculate your own inflation rate
What to know if your employer changes 401(k) providers
5 ways to cope with recession anxiety

The Labor Department classifies individuals as “employed part-time for economic reasons” if they prefer full-time employment but are forced to work part-time because their employer cuts their hours or they can’t find a full-time gig.

“We have seen a pretty dramatic decrease, and I think that’s a very healthy sign for American workers,” said Daniel Zhao, a senior economist at career website Glassdoor.

Prior to the pandemic, the number of involuntary part-time workers dipped below 4 million just two other times in the last two decades — in July 2019 and March and April 2006, according to the Federal Reserve Bank of St. Louis.

Strong job market

“I think this is a case where employers recognize they can’t afford to just have a bunch of part-time workers, because they’re going to lose them to full-time opportunities,” Zhao said of the decline in involuntary part-timers.

“If given a choice, a lot of these part-time workers will go find better opportunities elsewhere,” he added. “So, naturally, employers are getting pressured to offer full-time hours to part-time workers.”

‘Major milestone’

The decrease in June also comes as the overall labor market remains a bright spot in the U.S. economy despite fears of a recession on the horizon, according to economists.

Businesses added 372,000 jobs last month, beating expectations and continuing a strong pandemic-era recovery.

If the current job-growth trajectory holds, the U.S. would fully recover the 22 million lost jobs during the pandemic era in August. The private sector fully recovered to its prepandemic baseline in June, which U.S. Secretary of Labor Marty Walsh hailed as a “major milestone” on Friday morning.



Previous postPower to Remove LA County Sheriff Might Be on November Ballot – NBC Los Angeles Next postGun Rights Groups Sue in L.A. to Overturn New Law Banning Gun Sales to Minors – NBC Los Angeles


Los Angeles Financial times


Copyright © 2024 Los Angeles Financial times

Updates via RSS
or Email