More Americans are moving from part- time to full-time jobs, adding to evidence a strengthening labor market will bolster household confidence and spending.
The number of people putting in a full week (USEMFULL) rose to 113.8 million in December, the most since February 2009, the Labor Department’s monthly employment report showed last week. At the same time, 8.1 million (USEMPTER) worked fewer hours because they couldn’t find a full-time job, the least since January 2009.
“It’s what will traditionally happen when the job market overall is beginning to improve,” Tig Gilliam, chief executive officer of Adecco Group North America, said in a telephone interview.
While the jobless rate fell 0.5 percentage point over the past three months, going from 9 percent to 8.5 percent, the so- called underemployment rate (USUDMAER), which includes part-time employees who’d prefer a full-time job, dropped by 1.2 percentage points to reach 15.2 percent. The gain in hours and earnings resulting from a full-day’s work will probably help sustain consumers.
“By moving into more permanent positions, you get a more productive workforce,” said Michael Gapen, a senior U.S. economist at Barclays Capital Inc. in New York. “It makes labor more valuable and that means moderate wage growth, even with the unemployment rate at 8.5 percent. That translates into better consumption momentum entering this year.”
Stocks rose as German Chancellor Angela Merkel and French President Nicolas Sarkozy discussed plans to shore up the euro. The Standard & Poor’s 500 Index climbed 0.1 percent to 1,279.08 at 9:34 a.m. in New York.
