Full-Time Employment Takes a Hit in Q1 2021: How the Shift Towards Part-Time Work is Impacting the Labor Market

The first quarter of the year has seen a significant decrease in employment, with 139,800 jobs lost. This is the most pronounced loss since the pandemic and not including 2020, since 2014. The primary reason for this is the destruction of full-time jobs. In total, the number of people employed with full-time work decreased by 199,700, while only 59,900 part-time positions were created. This means that for every part-time job created, three full-time jobs were lost. In comparison to last year’s first quarter, the relationship was almost one to one.

The sectors that experienced the greatest losses in full-time employment in the first quarter include professional and scientific activities, financial and insurance activities, wholesale and retail trade, public administration, defense, social security and household activities as employers. On the other hand, sectors such as education saw an increase in part-time positions.

The growth of part-time employment can be attributed to seasonal factors such as Easter falling in March this year and also due to an increase in minimum wage which may have led to a shift from full-time to part time jobs in some industries to reduce labor costs. Overall it has resulted in a decrease in total hours worked in the economy with more people working part time compared to last year.

Another factor that has contributed to this shift is an increase in the number of employed people who are not working due to illness or disability. This trend has been ongoing from previous years. It’s important to consider these changes when analyzing labor market trends.

In summary, while part-time employment may have helped cushion some of the blow during this period by providing some form of work for those who might have otherwise been out of work entirely