A Hidden Toll on Employment: Cut to Part Time

[Pale Blue Dot]

Source: New York Times

The number of Americans who have seen their full-time jobs chopped to part time because of weak business has swelled to more than 3.7 million — the largest figure since the government began tracking such data more than half a century ago.

The loss of pay has become a primary source of pain for millions of American families, reinforcing the downturn gripping the economy. Paychecks are shrinking just as home prices plunge and gas prices soar, furthering the austerity across the nation.

“I either stop eating, or stop using anything I can,” said Marvin L. Zinn, a clerk at a Walgreens drugstore in St. Joseph, Mich., who has seen his take-home pay drop to about $550 every two weeks from about $650, as his weekly hours have dropped to 37.5 from 44 in recent months.

Mr. Zinn has run up nearly $2,000 in credit card debt to buy food. He has put off dental work. He no longer attends church, he said, “because I can’t afford to drive.”

On the surface, the job market is weak but hardly desperate. Layoffs remain less frequent than in many economic downturns, and the unemployment rate is a relatively modest 5.5 percent. But that figure masks the strains of those who are losing hours or working part time because they cannot find full-time work — a stealth force that is eroding American spending power.

Read more: http://www.nytimes.com/2008/07/31/business/economy/31jobs.html?_r=1&partner=rssnyt&emc=rss&oref=slogin

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I doubt that many of us are surprised by this, but it's good to see it reported on.

[bluestateguy]

1. This economy is suffering from severe underemployment

The fact is that joblessness is not as bad as in previous recessions, but there is considerable underemployment taking place: unionized factory workers now out of work and working at Wal-Mart, computer programmers now working at Target, construction workers now doing day labor, fully trained Ph.D's now working as temporary adjunct professors being paid per course. These jobs typically have no benefits, fewer hours and no job security.

[Gormy Cuss]

2. The man in this excerpt would still be considered full time in most stats

Generally anyone who works at one place for 35 hours or more is considered full time. The fact that he's had a reduction in hours would be lost in the counts, even though his reduction in hours has had a significant impact on his earnings. That's why focusing on only one number like the unemployment rate is so limiting.

[Yavin4]

4. You're 100% Correct

Which is why the official UE rate number is more of a political number than an economic one.

[radfringe]

3. something that isn't really well tracked

of those who have been laid off, and did find another job - was new job at same pay, higher or lower pay?

my partner was laid off last september, over a 6 month period she sent out close to 200 resumes. Of those 200 resumes she had 8 interviews but no job offer.

she ended up working for a temp agency on a 6 month contract (no benes no health insurance) for $5/hr less than her previous job, and nets less than her unemployment

[dysfunctional press]

6. same thing with overall jobs numbers...

we're losing highdecent-paying manufacturing jobs, and replacing them with low-paying service sector jobs.
but when the jobs numbers are reported, they act like all jobs are of equal importance to the country's economy.

they aren't.

and the growing pool of lower-paid than expected workers are also going to be responsible for providing payroll money so the baby-boomers can collect SS checks.

it's going to get real ugly if things continue going as they have been.

[YvonneCa]

7. Or those of us who were forced into...

...early retirement that we weren't financially prepared for (yet). I know MANY people who were pushed to retire because it was cheaper for the employer to hire new people, who didn't have to be given health care or a 'defined benefit' retirement program.

[RaleighNCDUer]

5. My 25 year old daughter, who is developmentally troubled and being

treated for bi-polar, has been unable to get a even a p/t minimum wage job, because there are so many people who are far better potential employees trying for the same jobs - people who in normal times would shun that kind of work.

Even at the lowest tier of employment there is too much competition. I never thought I see the day when people would be lining up for jobs cleaning motel rooms or stocking supermarket shelves.

[area51]

8. "...unemployment rate is a relatively modest 5.5 percent..."

If anyone believes that unemployment is only 5.5%, I've got a bridge in Brooklyn I'd like to sell you. :eyes:

[KillCapitalism]

11. Put a 2 in front of that 5.5

and you've got the real number.

[MountainLaurel]

9. This is big in libraries now

Cutting a full-time position to multiple part-time ones to escape paying benefits, particularly when someone retires or leaves a job.

[ShockediSay]

10. What about the hidden tax increases of the Bushies?

the costs of lobbyist corruption

the exponential increase in the national debt

our treasury funds going into private pockets

inflation due to the fallen dollar because of
the Iraq war of choice financed by borrowing,
and sheltering the richy rich from taking on
their fair share

oil prices <lobbyist corruption>

gas prices

and yet they say we will raise your taxes

nobody has raised these hidden taxes, or
taxes generally, anywhere near as much
as the Bushy Neo-Cons

and to save his campaign, McCain brings in
a bunch of lobbyists