The recession leaves millions forced into involuntary part-time work. What happened and how does this even affect the economy? Which sectors of the work force are being hit hardest by this factor in our nation's employment crisis?
The month of December saw over 500,000 workers lose their jobs. Actual figures may be even higher due to employers cutting worker's hours and laid-off workers taking part-time work. This is an ominous sign for our economy because a large increase in job loss is usually presaged by large increases in part-time employment.
Experts have stated
The current issue of Issues in Labor Statistics published by the U.S. Department of Labor reports "the number of persons working part time for economic reasons, has suggested a softening in the demand for labor since about mid-2006" which reflects an increase of nearly three million people forced to either have the hours available cut by their employers or to find part time work as a result of losing their full time jobs.
Workers over age 25 are the largest group being pushed into part time status.
November, 2008 saw part time workers increase from 3.2 million to over 7 million mainly in the retail trade, food services and construction industries.
This 84% increase may lead to even more job losses which in turn can cause increases in bankruptcy, mortgage default and wage/price deflation. As former Treasury Secretary John Snow stated recently at the International Economic Forum of the Americas in Toronto, "I hate to say this, but I think we're in for a tough 2009. We're scared to death of deflation."
What does it all mean? The sad fact may be that things will get worse before they get better. Our President and President-Elect both have a strong belief that the American people can weather this storm and by working hard and cooperating turn things around more quickly. Let's all hope that they are right.
sources:
Issues in Labor Statistics, Dec. 2008
www.financialpost.com 1/11/2009
by: Ronnie Daniels
Portuguese
Spanish
French