Friday, September 4, 2009

Part Time Workers for Economic Reasons

The Cleveland Fed details:
The BLS’s Current Population Survey categorizes involuntary part-timers into those working part-time due to “slack work or business conditions” and those who “could only find a part-time job.” In other words, some workers had full-time jobs but went to part-time when their employers cut hours because business was falling off, while other workers had to start out in part-time jobs even though they were looking for full-time work, because that’s all that was available.
More specific, slack work is involuntary part-time labor as a result of a company made decision. Interestingly enough, companies haven't moved their staff to slack work hours, but have instead laid workers off or hired outside part-time workers in droves. The chart below details this showing part time hires vs. slack workers as a percent of the private work force.



I wonder if this somehow relates to full-time workers maintaining their health care benefits if hours are reduced vs. a temp hire in which the company doesn't have to pay for those same benefits?

Source: BLS

1 comment:

  1. you nailed it Jake.

    same here in Germany as i wrote some weeks ago (can´t remember your article i commented on).

    this will become the new normal:

    emplyoers are shifting from full time hires to staffing firms.

    that game has been played over here in Germany over the last 5 years.

    up to 75% of the new jobs during the expansion (2004-2007) came from part time work.

    and over the last 10years the number of workers at staffing firms tripled.

    originally created to bring low skilled workers into jobs i´t has been more an more misused by employers.

    there are a lot of part time employess doing the qualified work as a full time worker, but they´re only paid half the wage.

    with labor abundand expect this to become a major trend in the us jobs market.

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