 The unemployment rate dropped significantly from 4.9 percent to 4.6 percent in November 2016, according to the monthly jobs report from the Bureau of Labor Statistics released Dec. 2. Economists consider “full employment” the number of people seeking jobs equal to the number of job openings. That number is under 5 percent right now, compared to 10 percent during one of the worst recessions in our history. Consistent job growth is the reason that number is down. Those jobs, however, are not always full time. A growing number of jobs today need employees for part time work.
Based on an article in SHRM, the main reason the unemployment rate is down doesn’t have to do with what you might think. A large majority of Baby Boomers have retired and young people, who in the past were in the workforce, are still in school. The unemployment rate does not factor in those individuals who are “underemployed” meaning they have a part time job but want full time work. The share of people working part time because they can only get part-time hours is 44.6 percent higher than it was in 2007, according to new research from the Economic Policy Institute (EPI), a think tank based in Washington, D.C. Research shows that many U.S. workers feel underemployed, which could drive down productivity. They are not making good use of their skills and feeling underappreciated. That has a major effect on HR professionals who want positive employee satisfaction and engagement. Written by Katie Silvers katie@invigoratehr.com |
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