90% of New Jobs Created Last Year Were Part-Time, Leading to Underemployment
A significant portion of employment growth in the past year has resulted in underemployment, with nine out of ten individuals securing new positions seeking more working hours. Specifically, the equivalent of 90% of all new jobs created between the first quarter of 2025 and the first quarter of 2026 were characterized by underemployment. This indicates a trend where individuals are taking on roles that do not fully utilize their available working time or skills, leading them to desire additional employment. The data highlights a potential mismatch between the available jobs and the workforce's need for full-time or more comprehensive employment opportunities. This situation could have implications for household incomes and overall economic productivity if a large segment of the employed population is not working as many hours as they wish.
The data suggests a structural issue in the labor market where job creation is not translating into sufficient full-time employment opportunities. This trend of underemployment, where a vast majority of new positions require or lead to workers seeking more hours, indicates potential inefficiencies in matching labor supply with demand. From a systems perspective, this could reflect an economic environment favoring part-time or gig-based work, possibly due to employer cost considerations or evolving business models. Over the next decade, as automation and AI reshape industries, understanding and addressing underemployment will be crucial for maintaining social stability and ensuring broad-based economic participation. Policymakers may need to consider incentives for creating more robust, full-time roles or support systems for underemployed individuals to navigate this evolving landscape.
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