Last month, more Americans worked part-time or on a temporary basis, which could portend future changes in the shape of what appears to be a robust job market.
Hiring easily exceeded expectations in July, indicating a strong labor market despite other signs of economic weakness. However, an increase in the number of workers in part-time jobs for economic reasons — usually due to reduced hours, poor business conditions, or inability to find full-time work — indicates potential future instability.
According to the Bureau of Labor Statistics, the number of such workers, known as “involuntary part-time workers,” increased by a seasonally adjusted 303,000 in July to 3.9 million. This comes after a sharp drop of 707,000 in June.
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The volatile metric remains below the 4.4 million involuntary part-time workers recorded in February 2020, before the Covid-19 pandemic disrupted the labor market.
The volatile metric remains below the 4.4 million involuntary part-time workers recorded in February 2020, before the Covid-19 pandemic disrupted the labor market.
Full-time employment fell by 71,000 over the month, while part-time employment, both voluntary and involuntary, increased by 384,000.
The July increase was not due to a scarcity of full-time jobs. In July, there were fewer workers who could only find part-time work than in June. Instead, workers were forced to work part-time due to reduced hours and unfavorable business conditions, according to the report.
According to Julia Pollak, chief economist at ZipRecruiter, the report indicates a “wrong direction” and could herald a recession. At the same time, temporary help services jobs increased by 9,800 in July, more than doubling the 4,300 increase in June.
