In recent years, there has been a noticeable shift in the workforce towards part-time employment. This trend has largely gone unnoticed by many white-collar professionals, economists, and policy analysts who have long assumed that full-time work is readily available for those who seek it. However, the reality is that many workers in certain sectors are not given the option of working full-time hours, leading to a significant portion of the workforce being employed on a part-time basis.
One of the consequences of this shift is that focusing solely on hourly pay can be misleading. Take, for example, Walmart, which recently announced plans to raise its frontline hourly employees’ average pay to over $18 an hour. While this may seem like a positive development, the median Walmart worker actually makes significantly less than the annualized equivalent of $17.50 an hour at 40 hours a week. In fact, the median Walmart employee earns just $27,326 a year, equivalent to an average of 30 hours a week.
Similarly, at other major retailers like Target, TJX, and Kohl’s, the median employee’s annual earnings fall below the full-time equivalent of their hourly pay rates. This discrepancy highlights the fact that many workers in these industries are not able to secure full-time hours, despite starting at relatively higher hourly wages.
Even companies known for their generous benefits, such as Starbucks, have employees who struggle to make ends meet on part-time hours. While Starbucks raised its barista pay to $15 an hour in 2022, the median worker still earned just $12,254 a year, below the federal poverty level for a single person. To qualify for benefits at Starbucks, employees must work at least 20 hours a week, but even at this rate, their annual earnings fall short of a livable wage.
Overall, the prevalence of part-time work in various industries underscores the need for a more nuanced understanding of the labor market. Simply looking at hourly wages can be misleading when many workers are not able to secure full-time hours. As the workforce continues to evolve, it is essential for policymakers, economists, and employers to consider the implications of part-time employment and work towards creating more stable and sustainable opportunities for all workers.
