The latest data on unemployment rates for the month of July has revealed a concerning trend that has caught the attention of many economists. The Bureau of Labor Statistics has identified a group of workers known as marginally attached workers. These individuals are willing and available to work, but have not actively searched for a job in the past four weeks prior to the survey. The rise in the number of marginally attached workers poses a potential risk of transitioning into “disconnected workers” who completely exit the labor force due to reasons like low wages or increased competition.
According to a recent analysis by Alí Bustamante, a labor economist and director of the Worker Power and Economic Security program at the Roosevelt Institute, the segment of marginally attached workers has been growing at an alarming rate. Bustamante’s assessment of marginally attached workers, along with the unemployed workers, as a group referred to as U-6, has raised concerns about the health of the labor market. He described the increasing number of marginally attached workers as a warning sign for the U.S. labor market.
Nick Bunker, the economic research director for North America at Indeed Hiring Lab, shares Bustamante’s concerns about the rise in marginally attached workers. Bunker believes that the increasing number of marginally attached workers indicates a challenge in finding suitable employment opportunities. While the data is troubling, experts like Teresa Ghilarducci, a labor economist at The New School for Social Research, caution that it may be too early to predict the long-term impact of this trend.
As job growth begins to slow down, the competition for open roles is intensifying. Bustamante highlighted that the U.S. labor market is entering a new phase where workers are facing stiff competition for available jobs. This shift in dynamics signifies a change in the job market landscape and could potentially impact the overall job market stability in the coming months.
The surge in marginally attached workers poses a significant threat to the U.S. labor market. The growing number of individuals who are willing to work but unable to find suitable employment opportunities highlights the need for proactive measures to address this issue. While it is essential to monitor the situation closely, it is crucial for policymakers and stakeholders to take decisive actions to ensure the stability and sustainability of the labor market in the face of these challenges.
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