Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘involuntary part time work’

More U.S. Workers Have Highly Volatile, Unstable Incomes

Tuesday, January 3rd, 2017

The U.S stock market may be at record highs and U.S. unemployment at its lowest level since the Great Recession, but income inequality remains stubbornly high.

Contributing to this inequality is the fact that while more Americans are working than at any time since August 2007, more people are working part time, erratic and unpredictable schedules—without full-time, steady employment. Since 2007, the number of Americans involuntarily working part time has increased by nearly 45 percent. More Americans than before are part of what’s considered the contingent workforce, working on-call or on-demand, and as independent contractors or self-employed freelancers, often with earnings that vary dramatically month to month.

These workers span the socioeconomic spectrum, from low-wage workers in service, retail, hospitality and restaurant jobs—and temps in industry, construction and manufacturing—to highly educated Americans working job-to-job because their professions lack fulltime employment opportunities given the structure of many information age businesses. As Andrew Stettner, Michael Cassidy and George Wentworth point out in their new report, A New Safety Net for an Era of Unstable Earnings, what all these workers have in common are highly volatile, unstable incomes and a lack of access to the traditional U.S. unemployment insurance safety net.

“The programs we have to help people are very biased toward traditional incomes,” says Stettner, senior fellow at The Century Foundation. “Volatility in earnings is a really big problem.”

“Those with the least to lose are most likely to lose it”

Published by The Century Foundation, a progressive, nonpartisan think tank, in collaboration with the National Employment Law Project (NELP), which advocates for policies that expand access to work and labor protections for low-wage workers, the report found that those in the contingent or nontraditional workforce “experience nearly twice as much earnings volatility as standard workers.”

It also found that because of this situation, between 2008 and 2013, three out of five prime earners experienced at least as much as a 50 percent drop in their month-to-month income. Half experienced month-to-month income drops of more than 100 percent.

“This broad issue of underemployment,” says NELP senior counsel George Wentworth, “there’s less of a light on it and these people are not showing up in national unemployment figures. But these workers are struggling and many of them are not making ends meet.”

Central to this problem is that most workers now employed part time are making less than what they made previously, working full time. At the same time, their part-time or independent contractor status means they are likely not eligible for a full complement—if any, in the case of self-employed freelancers—of standard employment benefits, including employer paid health insurance or any form of unemployment insurance, explains Wentworth.

As the report notes, “Those with the least to lose are most likely to lose it.”

Policy recommendations

Both Stettner and Wentworth explain that historical policy responses—and those set up to help workers laid off during the Great Recession—focus on traditional employment situations. Typical unemployment insurance is also biased against those who take up part-time or self-employment gigs while they’re looking for new full-time jobs by reducing unemployment payments. Some states have partial unemployment benefits designed for part-time workers, including those who’ve involuntarily had their hours reduced, but these vary widely. The report found that for workers whose hours are cut from full time to part time, “ten states would replace half of their lost earnings while fourteen states would provide no benefits at all.”

To address what’s becoming the new normal for U.S. workers, the report makes several recommendations. It proposes that states offer partial unemployment benefits to workers earning less than 150 percent of what they’d qualify for weekly if they were laid off (rather than working part time). This would substantially improve coverage for workers whose hours have been cut or who take part-time jobs after losing fulltime jobs.

“It also should be easier to file for these benefits,” says Stettner, explaining that current work documentation requirements don’t necessarily reflect the reality of how part timers work and get paid.

The report also recommends broadening unemployment insurance support for work-sharing programs. Work-share programs, explains Wentworth, are designed to help employers avoid layoffs by retaining their existing workforce but with reduced hours.

The report proposes beefing up existing financial support for work-share programs to reduce the impact to employees of reduced hours. “This is basically for high road employers,” says Wentworth.

The report also recommends a pilot program to provide unemployment insurance to freelancers who don’t have a traditional employer relationship. This is perhaps the most challenging of the report’s proposals since it seeks to address circumstances that extend well beyond the issue of reduced hours. Ideas include giving freelancers better access to certain tax credits in ways that help even out swings in earnings. It could also involve building on international examples such as professional guilds in Europe, where people contribute in order to draw benefits when needed, Stettner explains.

These proposals go beyond and build on those already being discussed at the state, local and federal level to require employers to provide more stable scheduling, pay a minimum number of hours if workers are called for a shift and that protect workers who request schedule changes. They would also begin to address the situations of the estimated 19.1 million Americans who depend solely on freelance income and are currently without any employment safety net.

“We’re just scratching the surface to understand how to come up with a better set of market-based and government solutions,” says Stettner. “We’ve created a whole view of the world that now applies to only about half the working people in America,” he says. “We have this huge divide we need to hammer on. It should concern everyone.”

This article originally appeared at Inthesetimes.com on December 28, 2016. Reprinted with permission.

Elizabeth Grossman is the author of Chasing Molecules: Poisonous Products, Human Health, and the Promise of Green Chemistry, High Tech Trash: Digital Devices, Hidden Toxics, and Human Health, and other books. Her work has appeared in a variety of publications including Scientific American, Yale e360, Environmental Health Perspectives, Mother Jones, Ensia, Time, Civil Eats, The Guardian, The Washington Post, Salon and The Nation.

More Than 6 Million Americans Who Want Full-Time Jobs Are Stuck Working Part-Time

Monday, December 12th, 2016

The recovery from the Great Recession has been long, slow and steady. But it has also contributed unexpectedly to an increase in involuntary part-time work, which needs new regulation to protect workers from abuse, according to a new study released this week by the Economic Policy Institute.

Author Lonnie Golden finds that voluntary part-time work has remained more or less stable since 2007, around the start of the recession. But involuntary part-time work has increased by about 18 times the rate of growth of all work, and five times faster than part-time work. Currently, some 6.4 million Americans who want full-time jobs are stuck working part-time hours, according to Golden.

“The increase is almost entirely due to the inability of workers to find full-time jobs, leaving many workers to take or keep lower-paying jobs with less consistent hours to make ends meet,” he says. “In several industries, relying more on part-time work seems to have become the ‘new normal.’”

Employers often play it cautious after a recession, waiting to restore full-time jobs and hiring more part-timers as their businesses pick up. But, as Golden points out in his study, the recession isn’t responsible for the rise in involuntary part-time work. Structural shifts are almost entirely at play in this change in employment.

Golden argues that such an expansion represents a change in the long-term strategy of businesses in four key sectors of the economy, specifically, retail trade, leisure and hospitality, professional and business services, and educational and health services.

He reports that about 54 percent of the growth of involuntary part-time employment since 2007 comes from retail and leisure and hospitality, while the remainder of the growth mostly stems from the other two types of industries.

Involuntary part-time workers are about equally men and women, but workers in other demographic groups—black, Hispanic and prime-age workers, for example—more commonly suffer from not being able to find full-time jobs.

Notably, Golden found no evidence that the Affordable Care Act’s employer mandate caused the rise in involuntary part-time work.

Involuntary part-time workers usually work about half the hours of full-timers, get lower rates of pay per hour and fewer, if any, benefits. Workers at fast-food chains and other employers that rely extensively on part-timers also report that managers often reward or punish workers by adjusting the number of hours they are given. Such irregular scheduling of involuntary part-time work can disrupt family life. On the other hand, if workers have control over their schedules, such variation is one of the principal appeals of part-time work.

Golden reports that some experiments in public policy suggest a way of regulating part-time work to improve the prospects for part-time employees. One approach used in many countries and recommended by the International Labor Organization (ILO) is to require employers to provide part-timers the benefits of full-time workers, prorated to the hours they work. The ILO recommends setting minimum standards for hours of work, as the Washington, D.C., city council did recently for janitors in large commercial buildings.

Following the lead of legislation such as San Francisco’s “Predictable Scheduling and Fair Treatment” ordinance, states and cities could enact rules giving part-time workers a right of first refusal if additional hours of work become available. Golden also recommends adjusting unemployment insurance to make sure that part-timers can benefit.

In the end, he argues, part-time work needs to make sense for workers at least as much as it does for employers.

“Although there has been a structural shift toward involuntary part-time labor, we can address it with specific policy solutions that will help workers,” Golden says. “We should use every tool in our toolbox to further the economic recovery and help benefit millions of workers with more stable, better-paying job opportunities.”

This blog was originally posted on In These Times on December 7, 2016. Reprinted with permission.

David Moberg, a senior editor of In These Times, has been on the staff of the magazine since it began publishing in 1976. Before joining In These Times, he completed his work for a Ph.D. in anthropology at the University of Chicago and worked for Newsweek. He has received fellowships from the John D. and Catherine T. MacArthur Foundation and the Nation Institute for research on the new global economy. He can be reached at davidmoberg@inthesetimes.com.

 

Your Rights Job Survival The Issues Features Resources About This Blog