The first quarter of 2021 has seen a significant loss of employment, with 139,800 jobs being lost. This is the most pronounced decline since the pandemic and the year 2014, excluding 2020. The destruction of full-time jobs was primarily responsible for this decline. In total, the number of people employed with full-time work decreased by 199,700, while 59,900 part-time positions were created. This means that for every part-time job created, three full-time jobs were lost.
In terms of sectors that experienced significant losses in full-time employment in the first quarter of 2021, professional, scientific and technical sectors; financial and insurance activities; wholesale and retail trade; public administration; defense; social security; and household activities stood out as employers. On the other hand, education saw an increase in part-time positions along with hospitality, commerce, artistic recreational and domestic employment.
The increase in part-time employment in some sectors can be attributed to seasonal factors such as Easter falling in March this year. Additionally, an increase in the minimum interprofessional wage may have led to a shift from full-time to part-time jobs in some industries to reduce labor costs. Overall, there was a decrease in total hours worked in the economy due to more people working part-time compared to previous years.
It’s important to note that the growth of part-time employment and shift from full-time to part-time positions may have contributed to overall decrease in total hours worked in the economy. Furthermore, there has been an increase in the number of employed people not working due to illness or temporary disability which continues a trend from previous year.
When analyzing the state of labor market it’s important to consider these shifts in employment dynamics.