This comes from a John Mauldin newsletter dated July 5.
Now here’s the big joke of the whole deal:
Employed persons at work part time:
Part time involuntarily +275k
Because hours cut back +72k
Because that’s all they could find +111k
Part time voluntarily +840k
That is seriously pathetic and makes me wonder about the Retail adds +40k and the Leisure & Hospitality adds +39k. Low-paying, less than 40 hour a week jobs? You bet. Ditto Health care and social assistance, which clocked in with a hefty 33.7k.
But it also explains why, with 288k bodies added, the average workweek is not budging. Translation: they are hiring more workers instead of increasing the hours of existing workers. Which suggests that maybe this is more of what we have seen already: the quest to hire part time employees to avoid the benefits baloney.
Use your head. If we really created 288k jobs. And 275k folks were made involuntarily part-time, then this suggests that there are still way more candidates than there are openings.
-Analysis by Joan McCullough of U-6 Employment figures
When some of us pointed out, when the Affordable Care Act (Obamacare) was being debated way back in 2010, that the bill would result in an extraordinarily large number of temporary and part-time workers, we were called delusional and told we were just using that argument to oppose the ACA. It turns out, Mr. Krugman et al., that we were right. An unintended consequence of the ACA is a dramatic increase in part-time employment, especially among young people. There is no disputing this, unless you are willing to ignore the clear data from the BLS.
Precisely when young people are starting their careers and should be able to land “starter jobs” and look forward to establishing themselves, they now have to hold down multiple part-time jobs in order to simply survive. Gods forbid they have a kid or two.
-Commentary by John Mauldin