... Involuntary part-time employees are underemployed workers. The worker is ready and willing to work full-time, but doesn’t work more than 30 hours per week. This can be due to a reduction in hours due to business conditions, as seen during lockdowns. It also includes people who are unable to find full-time work. In short, it’s another form of underutilized labor in the economy—not unlike unemployment.
Labor supply is a delicate balance. Too little labor leads to a non-productive increase in wages, meaning it’s a raise—but not due to increased output (either in quantity or value). It may sound nice, but it tends to occur during periods where inflation eats up at least the extra wage growth ...
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