Summary 08-08 / December 2008 • U.S. Department of Labor • U.S. Bureau of Labor Statistics

Involuntary part-time work on the rise

A number of labor market indicators from the Current Population Survey (CPS) 

have pointed to a weakening 

labor market for more than a 

year, even before the onset of 

the current recession in December 2007 (as designated 

by the National Bureau of 

Economic Research). The offi cial unemployment rate, for 

example, rose by 2.3 percentage points from its recent low 

of 4.4 percent in March 2007 

to 6.7 percent in November 

2008. The employment-population ratio, which is the proportion of the working-age 

population that is employed, 

trended down from a recent 

peak of 63.4 percent in December 2006 to 61.4 percent 

in November 2008.

Another important indicator 

of labor market diffi culty, the 

number of persons working part 

time for economic reasons, has 

suggested a softening in the demand for labor since about mid2006. (See chart 1.) Sometimes 

referred to as involuntary parttime workers and viewed as 

underemployed, these individuals wanted full-time jobs but 

worked less than 35 hours during the survey reference week 

primarily due to slack work (a 

reduction in hours in response 

to unfavorable business conditions) or the inability to fi nd 

full-time work.1

 In November 

2008, 7.3 million persons were 

employed part time for economic reasons, up by 3.4 million 

from a recent low of 3.9 million 

in April 2006. (See table 1.) The 

percentage of total employment 

made up of involuntary parttime workers increased by 2.4 

percentage points to 5.1 percent 

over the same period.

As is typical during labor 

market downturns, the bulk of 

the 3.4 million increase in economic part-time employment 

was due to an increase in the 

number of workers whose hours 

were cut back due to slack work 

(as opposed to the inability to 

fi nd full-time work). In November 2008, workers employed 

part time for economic reasons 

due to slack work made up 3.8 

percent of total employment, 

more than twice the recent low 

of 1.7 percent in April 2006. 

Those employed part time for 

economic reasons because they 

could only fi nd part-time work 

accounted for 1.1 percent of 

total employment in November 2008, up slightly from 0.8 

percent in April 2006.

The number of workers 

on part-time schedules due to 

slack work often increases prior to a downturn in the business cycle. Similarly, a rise in 

economic part-time employment due to slack work frequently occurs before a rise 

in unemployment, mainly because many employers tend 

to reduce workers’ hours before implementing layoffs 

when faced with a decline in 

demand for their goods and 

services. Conversely, during a 

recovery, some employers increase the hours of their workers before hiring new workers. 

(See chart 2.)

Chart 1. Part-time employment for economic reasons and total unemployment, seasonally adjusted, 1956–2008

13,000

12,000

11,000

10,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

 9,000

 1,000

 0

1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008

NOTE: Shaded areas represent recessions as determined by the National Bureau of Economic Research (NBER). NBER has not yet determined an endpoint for the recession that began in December 

2007. Beginning in 1994, data refl ect the introduction of a major redesign of the Current Population Survey (CPS). Updated population controls were incorporated into the data in January of various 

years. These changes can affect comparability with data for prior periods. 

SOURCE: Bureau of Labor Statistics, Current Population Survey. 

Thousands Thousands

Unemployed

Part time for economic 

reasons

1994 CPS

redesign

13,000

12,000

11,000

10,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1,000

0
In general, workers under 

age 25 are overrepresented 

among those employed part 

time for economic reasons. In 

the third quarter of 2008, persons aged 16 to 24 accounted 

for about 25 percent of all 

workers employed part time 

for economic reasons while 

representing just 14 percent of 

all employed workers. However, workers aged 25 years 

and older have accounted 

for a disproportionately large 

share of the recent rise in involuntary part-time employment. From the third quarter 

of 2006 to the third quarter 

of 2008, 84 percent of the increase in involuntary part-time 

employment occurred among 

workers aged 25 years and older; they made up 75 percent of 

all involuntary part-time employment in the third quarter of 

2008.2

 (See table 2.)

In terms of industries affected, three industries accounted 

for about two-fi fths of involuntary part-time employment 

in the third quarter of 2008: 

retail trade, food services, and 

construction. The same three 

industries accounted for approximately the same proportion (about two-fi fths) of the 

total increase in involuntary 

part-time employment from 

the third quarter of 2006 to the 

third quarter of 2008. About 

1 in 20 workers at work part 

time for economic reasons in 

the third quarter of 2008 was 

employed in manufacturing, a 

share unchanged from 2 years 

earlier. (See table 2.)

In summary, the recent rise 

in involuntary part-time employment was mainly due to 

an increase in the number of 

workers whose hours have 

been reduced because of slack 

work and occurred mostly 

among workers aged 25 years 

and older. Also notable were 

contributions to the increase 

from construction (refl ecting 

the downturn in the housing 

market), food services, and 

retail trade.

For additional information, 

contact Emy Sok, an economist in the Division of Labor 

Force Statistics, Offi ce of

Employment and Unemployment Statistics. E-mail:

CPSInfo@bls.gov. Telephone: 202–691–6378.

NOTES

1

 A very small number are in the involuntary part-time employment category because of a seasonal decline in demand or because their job started or ended during 

the week.

2

 Quarterly data are used in the analysis of involuntary part-time employment by age and industry to improve the reliability of the estimates. Because these data are 

not available on a seasonally adjusted basis, unadjusted data for the same period of the year are used in the analysis.
Table 1. Involuntary part-time employment, by reason, selected monthly data, seasonally adjusted 

(Numbers in thousands) 

 April 2006 November 2008 Change

 Reason Percent

 Total Percent Total Percent Total distribution of 

 change

Total part time for economic reasons 1 .............. 3,932 100.0 7,321 100.0 3,389 100.0

 Slack work or business conditions................. 2,455 62.4 5,426 74.1 2,971 87.7

 Could only fi nd a part-time job ....................... 1,163 29.6 1,572 21.5 409 12.1

SOURCE: Bureau of Labor Statistics, Current Population Survey. 

1 Includes other categories not shown. 

Chart 2. Involuntary part-time employment, by reason, seasonally adjusted, 1956–2008

2,000

3,000

4,000

5,000

6,000

1,000

 0

1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008

NOTE: Shaded areas represent recessions as determined by the National Bureau of Economic Research (NBER). NBER has not yet determined an endpoint for the recession that began in December 

2007. Beginning in 1994, data refl ect the introduction of a major redesign of the Current Population Survey (CPS). Updated population controls were incorporated into the data in January of various 

years. These changes can affect comparability with data for prior periods. 

SOURCE: Bureau of Labor Statistics, Current Population Survey. 

Thousands Thousands

Part time due to 

slack work or business conditions

Could only fi nd part-time 

work

1994 CPS

redesign

2,000

3,000

4,000

5,000

6,000

1,000

0
Table 2. Involuntary part-time employment, by age, class of worker, and industry, selected quarterly data, not seasonally adjusted

(Numbers in thousands) 

 

 Age, industry, and class of worker 2006 Q3 2008 Q3 Change

 Percent Percent Percent

 Total distribution Total distribution Total distribution of 

 change

 

Age 

Total, 16 years and over, both sexes ................. 4,096 100.0 5,830 100.0 1,734 100.0

 16 to 19 years .................................................. 406 9.9 477 8.2 71 4.1

 20 to 24 years .................................................. 759 18.5 958 16.4 199 11.5

 25 years and over ............................................ 2,932 71.6 4,395 75.4 1,463 84.4

 25 to 34 years ................................................ 895 21.9 1,346 23.1 451 26.0

 35 to 44 years ................................................ 785 19.2 1,120 19.2 335 19.3

 45 to 54 years ................................................ 704 17.2 1,077 18.5 373 21.5

 55 years and over .......................................... 547 13.4 852 14.6 305 17.6

Industry and Class of Worker

Total, nonagricultural industries ............................. 4,007 100.0 5,739 100.0 1,732 100.0

 Self-employed workers ...................................... 478 11.9 726 12.7 248 14.3

 Unpaid family workers ....................................... 3 0.1 5 0.1 2 0.1

 Wage and salary workers .................................. 3,526 88.0 5,008 87.3 1,482 85.6

 Mining ............................................................ 5 0.1 11 0.2 6 0.3

 Construction .................................................. 399 10.0 602 10.5 203 11.7

 Manufacturing ................................................ 221 5.5 314 5.5 93 5.4

 Wholesale and retail trade ............................. 619 15.4 970 16.9 351 20.3

 Wholesale trade.......................................... 55 1.4 80 1.4 25 1.4

 Retail trade ................................................. 565 14.1 890 15.5 325 18.8

 Transportation and utilities............................. 144 3.6 237 4.1 93 5.4

 Transportation and warehousing ................ 139 3.5 229 4.0 90 5.2

 Utilities ........................................................ 5 0.1 8 0.1 3 0.2

 Information..................................................... 57 1.4 87 1.5 30 1.7

 Financial activities ......................................... 123 3.1 169 2.9 46 2.7

 Professional and business services .............. 323 8.1 452 7.9 129 7.4

 Professional and technical services ........... 86 2.1 127 2.2 41 2.4

 Management, administrative, and

 waste services ............................................ 237 5.9 324 5.6 87 5.0

 Education and health services....................... 643 16.0 801 14.0 158 9.1

 Educational services................................... 264 6.6 331 5.8 67 3.9

 Health care and social assistance .............. 379 9.5 469 8.2 90 5.2

 Leisure and hospitality ................................... 720 18.0 1,006 17.5 286 16.5

 Arts, entertainment, and recreation ............ 92 2.3 146 2.5 54 3.1

 Accommodation and food services ............. 628 15.7 860 15.0 232 13.4

 Accommodation ...................................... 94 2.3 111 1.9 17 1.0

 Food services and drinking places ......... 534 13.3 749 13.1 215 12.4

 Other services ............................................... 238 5.9 303 5.3 65 3.8

 Public administration ..................................... 33 0.8 56 1.0 23 1.3

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Involuntary part-time employment