Employers kept hiring in June, adding a better-than-expected 195,000 jobs, but many of them were part-time or temporary positions, hinting at a hollow economic recovery.
The number of part-timers who said they would prefer full-time work soared 322,000 to 8.2 million — the most in eight months, according to the Labor Department's monthly jobs report. These people were working part time because their hours had been cut or because they were unable to find a full-time job, the Bureau of Labor Statistics said.
The growing number of part-time workers may be related to the across-the-board federal budget cuts and the associated cutbacks and furloughs of federal employees, said Michael D. Goodman, associate professor and chairman of the Department of Public Policy at UMass Dartmouth.
And some employers may be reluctant to hire full-time workers because they would have to offer them health insurance under the Affordable Care Act, which starts to go into effect next year.
"Obamacare pretty much does discourage full-time work by withholding subsidies from a large majority of full-time workers and by penalizing employers who don't offer health insurance," said Casey B. Mulligan, a professor of economics at the University of Chicago.
But while there are incentives built into the Affordable Care Act that will lead some companies to hire part-timers over full-timers, that is not as important as sufficient demand for goods and services, said Robert A. Nakosteen, professor of economics and statistics at the UMass Amherst Isenberg School of Management.
"We still have a 'demand-deficient' economy — not enough spending in the aggregate, "Nakosteen wrote in an email, "and until this problem comes to an end, companies will not hire in sufficient quantities, and/or will hire part-timers, to bring our labor market to full employment."
Because more people started looking for work, the unemployment rate remained at 7.6 percent last month, according to the Labor Department.
"But the broadest official measure of unemployment, the so-called 'U-6', rose from 13.8 percent to 14.3 percent in June," Goodman said. "This measure includes the unemployed and workers who want to work but have given up looking and those working part-time for economic reasons. Thus, while the recovery continues, it is continuing to leave troublingly high numbers of American workers behind."
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