DENVER — Layoffs and hiring freezes are leading more people to get part-time jobs to pay the bills, and financial analysis shows it’s casting doubt on the labor market.
The national baseline unemployment remains low at 4.3%, but there are issues bubbling under the surface as people are struggling to find full-time work in a market where hiring has slowed significantly.
Take 34-year-old Denverite James Reynolds, for example. He’s worked for Apple and other prestigious start-ups as a software engineer making a six-figure salary for years.
But he currently works 20 hours a week at a sandwich shop in Denver making $18 an hour.
He said despite his qualifications, it’s been tough finding work in his field as artificial intelligence has added increasing levels of competition.
Reynolds spoke with Denver7 after returning from a job interview. It’s one of several he’s recently had as he looks for full-time work. With the current economic climate, Reynolds said it’s made living even tougher for him.
“You get to the point where you have a six-figure salary, and you think, 'Oh, man, I've made it. I'm in the I'm in the club, you know?’ I'm one of the people who's got a little bit of spare change lying around- I can sort of make plans,” Reynolds said. “Then when things change, and then all of a sudden, you’re minimum wage and basically scrapping for the change in the tip jar, it's a little bit of a different situation. I’ve had to pinch pennies. I've found myself asking, ‘is today a day where I really need to have two meals?’"
This isn’t something just happening here in Colorado, but nationally as well.
Federal unemployment data, which includes people working part-time who would prefer a full-time job, is currently 8.1% — it’s highest level in four years.
Data from the U.S. Department of Labor last week showed the number of Americans who filed for initial unemployment jumped to its highest level since October 2021.
In July, the U.S. also had more unemployed workers than job openings for the first time in four years.
