The latest report on the February employment situation released by the Bureau of Labor Statistics has raised some concerns about the state of the labor market. One notable statistic is the increase in the number of people who are stuck in part-time jobs when they would prefer full-time work. This figure went up by about 10%, indicating a potential softening in the labor market.
The Bureau of Labor Statistics uses six different measures to track unemployment, with the official unemployment rate, U3, coming in at 4.1%. However, a broader measure, U6, which includes discouraged workers, marginally attached workers, and those involuntarily working part-time, rose to 8% in February. This is the highest level this measure has been at since 2021.
According to Jeremy Reynolds, a sociologist at Purdue University, the significant increase in the number of people working part-time who wish they could work full-time is concerning. This number rose by 460,000 people last month, totaling just under 5 million. Lonnie Golden, an economics professor at Penn State University, Abington, noted that the increase in part-time work may be related to a decrease in discouraged workers who have given up looking for a job.
Golden explained that when discouraged workers re-enter the workforce, they may settle for part-time work if full-time opportunities are scarce. The current economic instability may also be contributing to the cautious approach both job seekers and employers are taking in the current job market.
Thomas Vick, from staffing and consulting firm Robert Half, highlighted the uncertainty in the broader economy as a factor leading to more part-time work. With the unpredictable nature of the job market, both job seekers and employers are proceeding with caution.
Overall, the data from the February employment report suggests that the labor market may be facing challenges, with an increase in part-time work and a rise in the broader measure of unemployment. As the economy continues to navigate through uncertain times, it is essential for both job seekers and employers to adapt to the changing landscape of the job market.
