U.S part-time jobs edge higher in January

The U.S. unemployment rate stagnated in January at a 17-year low of 4.1 percent for the fourth consecutive month. Photo: Caleb Mutua/ CalebImages.

Chenoa Elizabeth, 38, is passionate about social justice and her two part-time jobs allow her to create positive social change in two very different ways. But she is looking for a third job.

She works 40 hours a week in New York City as a canvasser for a public interest research non-profit and as a clerk in a vegan deli supporting a healthy diet.

“I probably need a third job or a really amazing full-time job,” said Elizabeth.

And she is not alone. Data from the U.S Labor Department released early February showed that at least five million Americans took or kept low-paying jobs in January because they couldn’t find full-time jobs.

The data also showed that the economy added 200,000 jobs in January, surpassing analysts’ expectation of 180,000 jobs. However, discouraged workers and involuntary part-timers like Elizabeth increased to 8.2 percent, the highest in four months.

Increases in part-time jobs and a slight drop in average weekly hours for all private non-farm payrolls reflects a slack in the jobs market.

“Searching for a job can be a job in itself,” said Elizabeth, describing her first month after moving to New York City from Dallas, Texas, 10 months ago. “It is so much emotional labor when you are seated there waiting for replies; it can definitely kick your confidence.”

Job hunt

When she arrived in NYC, Elizabeth looked for jobs on the internet, including on Google search, Indeed and on Craigslist. She also updated her resume and made sure each job application demonstrated how her skills could benefit the organization she was applying to.

A few days later, a local vegan store posted a job offer on its Instagram page and she applied immediately. Food services and bars added 31,000 jobs in January alone, and 255,000 jobs over the past 12 months.

“I was really lucky,” said Elizabeth, who is currently studying women’s rights at Hunter College, a constituent college of the City University of New York. “It is so scary having to worry about housing, food and access to healthcare. No one should ever be put in this situation of wondering how they are going to feed themselves or survive.”

The report also showed that average hourly earnings rose 2.9 percent in January, the highest since the 2009 recession.

Civilian unemployment rate data from the Bureau of Labor Statistics. Shaded areas represent recession as determined by the National Bureau of Economic Research. Source: BLS

President Donald Trump attributed the gains to the tax code changes that Congressional Republicans passed in December.

The $1.5 trillion GOP tax plan, which introduced the most drastic tax changes in more than 30 years, sparked a corporate tax windfall that led top companies to announce bonuses for their employees.

Prof. Mark Cohen, the director of retail studies at Columbia University’s Graduate School of Business, said that the unemployment rate will continue to decline.

“At the end of the day, there seems to be availability of jobs in most parts of the country,” he said. “Wage rates seem to be edging up but not meaningfully and the industry seems to be moving into a state of hyper growth.”

The professor cautioned the over six million unemployed Americans not to expect a fundamental rise in employment as a result of the new corporate tax cuts yet.

“Trump has got this delusional notion that somehow, it’s going to be done,” he said. “There are a few businesses like Apple that are growing so they are going to make good their promise but I don’t think it’s going to be an across the board outcome and I think many companies are going to be cautious in investing in large numbers of employees.”

He said the industry will be cautious in expanding its expense base. Instead, Cohen expects corporations to invest in technology, step up their marketing and maybe raise labor rates.

The former Sears Canada Inc. (OTCMKTS: SRSCQ) CEO noted that a significant number of Americans have stopped looking for jobs any more. Instead, he said that this group of people have made changes in their lifestyle to avoiding going back to the workforce because of the frustrations of not getting a job.

“There are still a tremendous number of people who are not positioned to successfully participate in this 21st-century economy. They aren’t educated in areas like computer coding and things like that.”

Elizabeth also agrees that things could be better.

“I still think we have a long way to go,” she said. “Until we have affordable housing, access to good jobs is vital, so that people can survive with benefits.”