A number of our friends, acquaintances, and even at least one relative are victims of the new discrimination. They include a university lecturer, a Walmart employee, a professional classical pianist, and a daughter who works with the disabled… and there are millions of Americans like them. Who are they? They’re the part-timers, the nearly thirty million plus Americans who work less than full-time, the majority of whom do not receive benefits, particularly health benefits. And the number of part-time employees in American business rises every year, so that part-timers are approaching twenty percent of the workforce.
More disturbing than this is the fact that, according to the Bureau of Labor Statistics (BLS), almost all the increase in part-time employment since 1969 has been involuntary, in that employers have only offered those additional jobs as part-time, and in the majority of cases, employers are creating multiple part-time jobs rather than fewer full-time positions. There’s an economic rationale behind this, as shown by a 2012 BLS study that indicates full-time employees’ average hourly pay is some 60% higher than that of part-timers.
Over the past ten years the number of part-time jobs has doubled, while the number of full-time jobs has decreased by around nine million positions. Even the current “positive” numbers in the decline of joblessness mask the fact that full-time jobs are continuing to decline, while part-time jobs are increasing at a rate faster than the decline of full-time positions.
Much of this change in the composition of employment is the result of computerization and statistical managing, because better data and software allow employers to use only the staff they think they need, and with the emphasis on profitability and the cutthroat nature of retailing in particular, the costs of fluctuating demand fall almost entirely on the part-time employees, rather than on management or permanent full-time employees.
In addition to financial costs, the increasing reliance on part-time employment creates stress and uncertainty among the part-timers. For example, a 2011 study of retail establishments in New York City showed that fifty percent of employees were part-time, and only about ten percent of the part-timers had fixed schedules on a week-to-week basis. The other problem with this increasing “management efficiency” in managing labor costs is that it makes it harder and harder for part-timers to cobble together two part-time positions in order to make ends meet because there’s less and less certainty in when they will work and for how long. This impacts everything from what they can afford to dealing with children and childcare.
While there’s a perception that temporary and part-time employment is largely confined to the retail and service industries, and to people without advanced training and education, that’s a complete misconception. Despite the growth of colleges and universities, and the increasing number of students graduating, the faculty composition over the last generation has shifted from being roughly 70% full-time to almost 70% part-time (or adjunct faculty), and with the passage of the Affordable Health Care Act, most state colleges and universities will have to either reduce the hours that existing part-time faculty teach and hire more, and likely less qualified adjuncts, if they can find them because the total compensation will decline, or add more full-time faculty, which the states cannot afford to fund. This same problem will also affect hundreds of thousands of businesses as well.
Temporary employment in jobs requiring technology, business, computer, and other higher education skills has almost tripled in the last 30 years, and the temporary staffing and employment field was the largest growing employer segment in the United States over the last three years. More and more businesses are laying off full-time skilled people, but hiring them, or others, back part-time as consultants.
The bottom-line? American business – and higher education — will do anything to minimize labor costs, and that means – unless government gets more involved in labor policy and regulation – that more and more American families are going to see either a stagnation or a reduction in their real standard of living. This has enormous implications for everyone, not just for those part-time employees.
What business and the politicians don’t seem to realize is that, as they move to a more “efficient” part-time workforce, there will be fewer and fewer full-time employees, and given the cost –pressures, and the threat of replacement by part-timers, even the full-time employees will be, and are, except for top management, compensated at a lower “real” level. Both full-time employees and especially the growing ranks of part-time employees will have less and less money to spend on the goods and services that they provide. Consumer demand over the past five years has been supported by a level of government borrowing that cannot continue indefinitely, or even for more than a few years. The only people immune to or insulated from this down-sizing of real income will be a comparatively small number of individuals with skills or positions of power.
Yet, the process of each business maximizing its labor “efficiency” results in a diminution of overall baseline purchasing power… and, unless the question is addressed on a society-wide basis, could result in an economic death spiral… if the social unrest created by the results of such headlong pursuit of “employee efficiency” doesn’t result in violent political upheaval first. We’re already seeing signs of this in the growing support for Obama’s position on taxing the top two percent, because what most people don’t realize is that this is the first time ever in American history that a majority of the people have been in favor of tax increases on the well-off.
Will anyone in power really read the handwriting on the wall?