Nonsequitur: Part-time Recovery

October 5, 2012

According to the Bureau of Labor, total employment rose by 873, 000 jobs last month, leading to a drop in the Unemployment Rate* to 7.8%. The bad news is that 3/4 of these new jobs were part-time:

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) rose from 8.0 million in August to 8.6 million in September. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

In other words, 600K of the new jobs were part-time positions that job seekers settled for when they couldn’t find anything better .   I guess part-time is better than no-time, but does it pay the mortgage?  That means the real job growth was only 173,000 full-time positions.

Welcome to the Part-time Recovery.

*Of course, the unemployment rate does NOT count the 802, 000 “Discouraged Workers” who are ” … persons not currently looking for work because they believe no jobs are available for them.”

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2 Responses to “Nonsequitur: Part-time Recovery”

  1. […] the business model away from the 40 hour work week?  I don’t think it coincidental that in last month’s jobs report, the vast majority of new hires (over 500K) were […]

  2. […] pay lower wages.  (You’ll find further discussion of this topic in my earlier entries “Part-time Recovery” and “Most Recovery Jobs are Low […]

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