Wednesday, April 24, 2013

Part-time jobs increase, but it raising uncomfortable ramifications.


An article in the New York Times discussed the phenomena of part-time work that becomes the sole employment while people wait for a better job. The article was written by Catherine Rampell. The US economy generated 30 months of continuous job growth, but with millions of people looking for work with a greater income, the growth isn’t comforting.

In March, 7.6 million Americans wanted more hours while they were working in part-time jobs, which is about the same as the figure in 2012 and three million more than in 2007 when the recession began. Of course the invisible underemployed workers don’t actually count toward the jobless rate of 7.6% because that figure doesn’t mean much. However, a more inclusive figure, which includes involuntary part-time workers and people who want work, but have stopped looking is 13.8%.

Diane Swonk, chef economist at Meirow Financial in Chicago said, “There’s nothing inherently wrong with people taking part-time jobs if they want them. The problem is that people are accepting part-time pay because they have no other choice.”

This is really the key; people have no other choice so they settle for part-time work with part-time hours and part-time wages. Most hiring since the economy began improving has been in the low-wage employment sectors in retail, home health care, and food preparation. Household incomes have stagnated during the recovery, and fell during the last report. So now people are starting to get concerned about the quality of the new jobs in addition to the pace in which hiring is taking place. Part-time work rose during the recession and the early part of the recovery, and it appears to be continuing now. About 19% of workers say they usually work part-time, and that is defined as fewer than 35 hours per week opposed to 16.9% when the recession began. Most of the gains in part-time work have been by people who reluctantly work fewer hours because of slacking business conditions for their employer or because of an inability to find a full time job.

The article shares some personal stories about people working part-time when they want full-time employment, and how in some cases their bosses are trying to get them more hours. Part-time workers looking for full-time work have fewer hours and less income than desired. They are also less likely to receive benefits and more likely to have unpredictable schedules, which makes childcare and transportation challenging and even finding second part-time jobs. Additionally, part-time workers often make less per hour than their full-time peers.

There is a good chance that strong job growth in food services and retail (which rely on part-time laborers) could skew the composition of full-time verses part-time employees. The article also alleges that changed to health care policy might also play a role in the shifts to dependence on part-time workers. Mostly, the consensus is everyone is confused over specific policies and potential penalties. The article ends by positing that some employ part-time workers because figuring out a retail schedule with full-time workers is too challenging. Honestly, that just feels lazy to me.

Corporations benefit from part-time employees because the employees don’t require benefits. Part-time workers have also traditionally been more difficult to organize because they have fewer strong ties to the company. Reliance on part-time laborers will change the composition of the US work force. With all of this, the need for universal health care and a workers’ bill of rights becomes more apparent. It will be interesting and worth further investigation as to why the part-time work force has been rapidly increasing. 

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