Tags: Baumohl | part time | job | work

USA Today: The Rise of the Part-Time Nation

By    |   Monday, 07 July 2014 12:36 PM

The rise in part-time U.S. workers is starting to worry some economists. The trend cast a glum note on last week's improved payroll numbers from the Labor Department.

The government's reading for June included a sharp rise in the number of part-time workers who prefer full-time jobs. The total rose by 275,000 to 7.5 million.

Moreover, the average workweek in June was unchanged at 34.5 hours for the fourth consecutive month.

Editor’s Note:
5 Shocking Reasons the Dow Will Hit 60,000


"It stands to reason that if the economy is improving, we would see employees put in more time on the job," Bernard Baumohl, chief global economist at The Economic Outlook Group, told USA Today. "This is usually a leading indicator of both future hiring and pay increases."

In Baumohl's view, the growth in part-time work is a significant reason wage gains remain weak, up only 2 percent during the previous 12 months.

"Companies view labor more as inventory that is to be hired when they need it and let go when they don't need it."

Jim O'Sullivan, chief U.S. economist of High Frequency Economics, told USA Today that Obamacare, which requires firms with at least 50 employees to provide health insurance to those working at least 30 hours, also could be prompting some businesses to hire more part-time workers.

But O'Sullivan was fairly bullish nonetheless. He pointed to the latest survey from the National Federation of Independent Business, which found 24 percent of small businesses had full-time openings in June that they could not fill — the highest since 2007.

Forbes contributor Louis Woodhill, a software entrepreneur, noted that while the latest Bureau of Labor Statistics (BLS) report showed total U.S. employment increased by 407,000 in June, the number of people working part time increased by 1.1 million.

"This means that the number of full-time workers actually fell by 708,000," he explained, adding that the labor force participation rate continued to limp along at 62.8 percent last month — a low level that matched the level of March 1978.

"Labor force participation continues to reflect the Obama administration's efforts to provide alternatives to working (e.g., food stamps, Social Security Disability, Obamacare), rather than to create employment growth," Woodhill noted.

"The Democrats have gone 'all in' on the progressive welfare state, which currently offers at least 92 means-tested programs. All of these, in one way or another, have the effect of making life more comfortable for adults that don't fully support themselves and their children via work."

Real Clear Markets contributor Jeffrey Dorfman, a University of Georgia economics professor, analyzed that population growth and the BLS jobs statistics and concluded that 13.4 million more people in the United States in June needed someone else to support them that in 2008.

"The data suggest a permanent rise in the number of Americans who expect to be supported by either family members or the government. Policymakers probably should put more effort into determining how the nation can afford all these millions of new non-workers," Dorfman explained.

"Each worker has to support more people than they used to: through taxes to fund welfare and entitlement programs or in their families where perhaps only one spouse is working, unemployed grown children have returned home or elderly parents need financial support."

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Economy
The rise in part-time U.S. workers is starting to worry some economists. The trend cast a glum note on last week's improved payroll numbers from the Labor Department.
Baumohl, part time, job, work
557
2014-36-07
Monday, 07 July 2014 12:36 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved