That part-time work problem

When the January employment numbers came out a month ago, I pointed out the rise in part-time work for economic reasons - otherwise known as involuntary underemployed. These are worker who would like to have a full time job, but can't find one. Friday's numbers for February were about the same -- an increase of over 100,000 involuntary underemployed.

Part of the reason for this growth is economic conditions. But part is also due to a changing in the labor market itself - as the Wall Street Journal (More People Pushed Into Part-Time Work Force) points out:

A big factor is the fast-growing retail sector, which has felt more pressure to use part-timers since many supermarket and big-box chains started staying open for extended hours in the 1980s and 1990s. The stores' most recent wrinkle is the adoption of computerized scheduling systems, which try to boost service and trim costs by matching staff size to customer traffic, hour by hour. Growth of part-time staff in the sector has been slightly outpacing that of full-time staff since 2000, according to Labor Department figures.
. . .
The makers of the new scheduling systems -- as well as retail analysts and unions -- say the systems make it easier for chains to manage a big roster of part-timers working short, flexible shifts. Previously, that was too difficult to be worthwhile for many companies. As use of the systems spreads, the makers are growing fast: Their combined revenue rose 8% last year to $814 million and could reach $1 billion in the next few years, according to AMR Research.

The problem isn't just the reduced hours -- many of these underemployed are actually working two or more part-time jobs. The problem is the lower hourly rate and the lack of benefits. And, as the Journal article notes, "Those working two part-time jobs are taxed twice for unemployment insurance."

Part time work and flexible scheduling are going to be a permanent feature of the I-Cubed Economy. But there is no reason why part-time workers aren't treated the same as other workers. At a minimum, we need a system that apportions job related benefits and taxes fairly accord multiple employers. Maybe I choose to work part time, but as long as we have an employer-provided health care system, that part-time job should contribute an equivalent part to my health insurance costs. Likewise, it should contribute something toward my retirement savings.

Fixing the part-time worker problem will increase the flexibility of the labor force – and a more flexible labor force will contribute to the agility of the I-Cubed Economy. That will contribute mightily to both the corporate bottom line and the nation’s prosperity.