The latest job markets report for June has revealed a concerning trend – a significant increase in the number of individuals working part-time involuntarily.
According to the Labor Department, there were 452,000 people who cited economic reasons for their part-time employment. This includes individuals who had their hours reduced due to a slowdown in work or unfavorable business conditions.
While this data can be volatile, excluding the period around the COVID-19 pandemic outbreak, June saw the largest monthly rise since August 2019.
In terms of average weekly hours, June recorded 34.4 hours, a slight increase from May’s figure. However, this was lower than the peak of 35 hours observed in January 2021 during the post-COVID recovery.
Following the release of this data, U.S. stock futures (ES00, -0.34%) indicated a downward trend. The headline figure of a 209,000 rise in nonfarm payrolls added to investors’ concerns.
Peter Tchir from Academy Securities commented, “I believe good news is generally positive for stocks; however, this data might have slightly negative implications, which could weigh on risk assets as the market processes this information.”
The job market is experiencing significant challenges, with involuntary part-time work on the rise. As investors monitor these developments, its impact on various sectors and asset classes remains to be seen.
