Unemployment Takes a Hit: Largest Loss of Jobs in U.S. Since Pandemic Began and Shift Toward Part-Time Work

In the first quarter of 2021, employment in the United States decreased by 139,800 jobs. This marks the largest loss of employment since the pandemic began and is only second to 2020. The majority of these losses were due to full-time positions, with a decrease of 199,700 full-time jobs and an increase of 59,900 part-time positions. This means that for every part-time job created, three full-time jobs were lost.

The sectors that experienced the most significant losses in full-time employment included professional and scientific activities, financial and insurance activities, wholesale and retail trade, public administration, defense, social security, and household activities. On the other hand, sectors such as education, hospitality, commerce, artistic recreational and domestic employment saw an increase in part-time positions.

Several factors contributed to this shift in employment dynamics. Easter fell in March this year which influenced the growth of part-time employment in some sectors. Additionally, the increase in the minimum interprofessional wage may have led to a shift from full-time to part-time jobs in some industries to reduce labor costs. Overall, this resulted in a decrease in total hours worked in the economy with more people working part-time compared to previous years.

This trend towards part-time employment is important when analyzing the state of labor market as it affects not only those who are employed but also those who are not working due to illness or disability. It’s also important for policymakers and employers to consider when making decisions about labor policies and practices.