Since the beginning of the year, the labor market has experienced a significant shift in employment dynamics. The first quarter ended with a loss of 139,800 jobs, which is the most pronounced since the pandemic and excluding 2020, since 2014. This was primarily due to the destruction of full-time jobs. In total, there were 199,700 fewer 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. In comparison to last year’s first quarter, this relationship was almost one to one.
The professional, scientific and technical sectors as well as financial and insurance activities experienced significant losses in full-time employment during the first quarter. Public administration, defense, social security and household activities also suffered from major losses in full-time employment. On the other hand, education, hospitality and commerce saw an increase in part-time positions. Seasonal factors such as Easter falling in March this year influenced some sectors’ growth in part-time employment.
The increase in part-time employment may have contributed to a decrease in total hours worked in the economy overall. Additionally, more people are working part-time compared to last year due to various reasons including illness or temporary disability among employed individuals who are not currently working.
This shift in employment dynamics highlights the importance of considering it when analyzing the state of the labor market.