Unemployment, as measured by Gallup ,indicates no improvement in joblessness in May, a bad sign for the government unemployment numbers to be released this Friday.
The research firm says that its unemployment rate (not seasonally adjusted) declined to 9.4% in May from 9.7% in April and 10.4% in March. However, this improvement was more than offset as the percentage of those working part-time who want full-time work increased to 9.7% in May from 9.2% in April. The net result of these changes is that Gallup now finds more part-time workers wanting full-time work than unemployed workers.
The results confirm the growing body of evidence that the number of people with full-time jobs and full-time benefits has been replaced by people with part-time jobs and no benefits at all. This new population of people without permanent work serves businesses well. Companies can keep costs low by not paying healthcare costs and by forcing people who have no jobs to work for low pay.
The data is also an indication that businesses are not sure enough of the economy to add full-time workers. If this is true, May unemployment may show an improvement, but, if so, most of that will come from census hiring.
The information is another example of how American companies are still improving productivity, a trend many economists believe cannot continue. But, it can, if a larger and larger number of people are forced to work for less and less.
Douglas A. McIntyre
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