American employers want more part-time workers. Here is what it means

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Washington
CNN
—

These days companies prefer part time jobs.

Demand for full-time employees on the jobs site was actually flat from January 2022 to May this year. Recent analysis Millions of job openings, but ads for part-time jobs increased by about 10% over the same period. Postings for those types of jobs started in 2022 and have been near those high levels ever since. (Reportingly, full-time is still the most common type of job.)

Hiring activity has shown a similar trend: The amount of part-time employment rose 8.9% in May from January 2022, compared with a 1.5% increase in full-time employment over the same period, according to Labor Department data.

That would mark a turnaround in the labor market, with the economy’s mainstay eyeing the timing of its first interest rate cut after the Federal Reserve raised borrowing costs to a 23-year high to fight inflation.

At an event hosted by the Commonwealth Club of California’s World Affairs last week, San Francisco Fed President Mary Daly explained how the job market has changed recently and what can be done.

„So far, the labor market has been adjusting slowly, and the unemployment rate has only risen. But we’re getting closer to a point where that benign effect may be less,” Daley said. .”

The U.S. job market remains strong overall, but has cooled somewhat over the past year. After more than two years below that exceptionally low threshold, the unemployment rate rose to 4% in May. The number of new applications for jobless benefits, a proxy for layoffs, has been rising in recent weeks, with continued claims last week reaching the highest level since November 2021. According to the latest government figures, there were 8.1 million job openings in April. That’s down significantly from a record high of 12.2 million in March 2022.

This shift could be a sign of employer weakness or employer strength, underscoring growing uncertainty in the labor market. Are employers losing their appetite for the cost of hiring full-time workers, or are they responding to workers eager for the flexibility a part-time schedule can provide?

„Whether there is no economic demand due to competitive demand to attract workers in an even tighter market with the promise of more flexibility, or because the economy cools and fewer labor hours are needed, the effect for workers is clear: more part-time roles are available for those who want or need them,” the report said.

Industries that may advertise part-time work from May include beauty and health; personal care and home health; retail sales; food preparation and service; And the game, really said. In May, the largest increase in part-time job openings from two years ago was in beauty and health (+26.9%); Marketing (+10.2%); hospitality and tourism (+9.9%); media and communications (+8.9%); and arts and entertainment (+7.9%).

During the Great Recession from 2007 to 2009, part-time work rose sharply. Research from the San Francisco Fed. Economist Daniel Culbertson, who actually wrote the report, said the opposite was true in 2020 when the economy was in the thick of a stunning recovery after a brief recession.

„There was this rise in part-time work as the economy and the labor market came out of the pandemic,” Culbertson told CNN.

My colleague Alicia Wallace reports that US prices did not rise in May, helping to bring inflation back to normal levels, a welcome boost for cost-conscious Americans.

The personal consumption expenditures price index — a closely watched inflation gauge used by the Federal Reserve to gauge whether the economy is approaching the central bank’s 2% target — was unchanged from April and fell to 2.6% in the 12 months ended in May. A month earlier, according to business sector data released on Friday.

Gas prices (down 2.1% for the month) and cheaper commodity prices (down 0.4%) helped moderate overall inflation, the report said. Food prices fell by 0.1%.

Excluding energy and food — the most volatile sectors — the core PCE price index rose 0.1% on the month, down from 2.8% in the previous month to 2.6% in the new three-year period. Friday’s report came in line with expectations.

The Commerce Department’s monthly Personal Income and Expenditures report also includes important data on how Americans earn, spend and save.

Consumer spending, a significant driver of economic activity, rose 0.2% month-on-month, up from 0.1% in the previous month. Excluding inflation, real spending grew 0.3%.

Read more here.

Monday: S&P Global and the Institute for Supply Management release the June Business Survey, which measures economic activity in the U.S. manufacturing sector.

Tuesday: The Statistical Office of the European Union publishes June inflation data. Central Bank President Jerome Powell participates in a forum hosted by the European Central Bank. The US Department of Labor releases May data on job openings, exits, hiring and layoffs.

Wednesday: Revenue of Constellation Brands. New York Fed President John Williams delivers comments. Automated Data Processing publishes its June employment report. The US Commerce Department releases May data on trade flows and new orders for manufactured goods. S&P Global and the Institute for Supply Management release the June Business Survey, which measures economic activity in the U.S. services sector. The Federal Reserve publishes minutes of its June policymaking meeting.

Thursday: US markets were closed on the Fourth of July.

Friday: New York Fed President John Williams delivers comments. The U.S. Department of Labor releases June statistics that measure the state of the labor market, including monthly job growth, wage gains and the unemployment rate.