Underemployment Hits 20.3% for March

by Stephan Tawney on April 1, 2010

The percentage of the American workforce considered “underemployed” hit 20.3% during the month of March, according to a survey conducted by Gallup. The “underemployed” category consists of workers who are unemployed or can not find a sufficient amount of work.

Quoth Gallup:

A rise in the percentage of part-timers wanting to work full time (from 9.2% to 9.9%) is responsible for the March increase in underemployment. Unemployment saw a slight, but insignificant, decline in March.

Which is in line with predictions from Bloomberg, which expects a small number of jobs created but the unemployment rate to remain at a disturbing 9.7%.

Six in 10 underemployed Americans are not hopeful they will find work or move from part-time to full-time work in the next four weeks. That translates to 12% of the workforce that is both underemployed and not hopeful they will find their desired amount of work. The lack of change suggests that underemployed Americans anticipated long-term difficulties in finding work well before the administration’s formal announcement was made.

It’s another reminder that a lower unemployment rate doesn’t necessarily translate to higher household incomes. The unemployment rate only accounts for the percentage of the workforce without a job. What’s not figured into that statistic would be the percentage of individuals who are unable to find sufficient work or have dropped out of the workforce entirely.



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