Unemployment numbers have traditionally been used as the marker for economic health, but economist Etienne Lale has said involuntary part-time work should be taken into account. In a recent paper, Lale explored the significance of the "intensive labour margin" in the US and UK. He found that companies and workers moved within this margin during recessions, with employees changing from full-time to part-time with the same employer. Around 50% of workers experienced a reduction in the hours during recessions. As a result, including incremental adjustments in hoursthe hours people work could transform how economists view labour supply during the business cycle.
Unemployment numbers have traditionally been used as the marker for economic health, but economist Etienne Lale has said involuntary part-time work should be taken into account. In a recent paper, Lale explored the significance of the "intensive labour margin" in the US and UK. He found that companies and workers moved within this margin during recessions, with employees changing from full-time to part-time with the same employer. Around 50% of workers experienced a reduction in hours during recessions. As a result, including incremental adjustments in the hours people work could transform how economists view labour supply during the business cycle.