The faltering U.S. labor market is pushing more Americans into part-time work and lower-paying roles they don’t want. The official unemployment rate remains low at 4.3%, but alternative measures show deeper strain.
A broader gauge of unemployment—which counts people working part-time but seeking full-time jobs, and those who stopped looking out of discouragement—rose to 8.1% in August, its highest in nearly four years. That rate has been climbing steadily for two years. New data this week also confirmed the 2024 job market was weaker than previously reported.
U.S. labor market weak with Americans stuck with part-time work
“There are more people finding themselves in a delicate position when it comes to their opportunities to find work and bounce back,” said Gregory Daco, chief economist at EY-Parthenon. He pointed out that one in four job seekers have been unemployed for at least six months. Just a year ago, it was one in five.
A large number of these workers are taking part-time jobs outside of their fields. Over the past ten months, 36-year-old Anna Whitlock, a former tech project manager, has applied for hundreds of jobs without getting hired. “I’ve applied to grocery stores, I’ve applied to coffee stands, I’ve applied to a dozen administrative assistant positions locally, and I’m getting rejections from all of them,” said Whitlock, who now works part-time as a nanny in Yakima, Wash., earning $20 an hour.
Some professionals who left jobs are struggling to return to full-time work. James Reynolds, 34, quit a wireless company job in June but has not been able to replace his six-figure salary. “Just keeping afloat is a challenge,” said Reynolds, who now earns $18 an hour working part-time at a Denver sandwich shop.
Others, like Kristal Andersen, former university faculty manager, have sent out hundreds of applications with no success. “For now, my family of four is living paycheck-to-paycheck, penny-to-penny,” she said.
The increase in part-time employment is helping many people in the short term. However, it is also leaving households with lower incomes, fewer benefits, and less hope for long-term stability.
Featured Image Credit: Mikhail Nilov; Pexels: Thank you!
