The Alarming Rise of Marginally Attached Workers in the U.S. Labor Market

The latest data on the U.S. labor market has raised concerns among economists, as the number of marginally attached workers has been steadily increasing. These workers, as defined by the Bureau of Labor Statistics, are individuals who are willing and able to work but have not actively searched for employment in the past four weeks. This category of workers is at risk of becoming disconnected from the labor force, which could have significant implications on the overall economy.

According to a recent analysis by labor economist Alí Bustamante, the number of marginally attached workers has been growing at an alarming rate of 247,000 per month over the past three months. When combined with unemployed workers, this group is referred to as U-6 by the BLS. Bustamante has highlighted this trend as a warning sign for the labor market, indicating that there may be underlying issues that need to be addressed.

Economic research director Nick Bunker has also expressed concerns about the rise in marginally attached workers, stating that it could be a sign of difficulties in finding suitable employment. As more people enter the job market and competition for available roles increases, job seekers may face greater challenges in securing employment. This heightened competition could mark a new phase in the labor market, where job growth begins to slow down.

While some experts believe that it may be premature to draw definitive conclusions about the future trajectory of marginally attached workers, others are closely monitoring the situation. Labor economist Teresa Ghilarducci has emphasized the need to keep a close eye on this labor segment in the coming months, as it could provide valuable insights into the state of the economy. Ghilarducci believes that the recent spike in marginally attached workers may be a corrective response to previous job market reports.

The increasing number of marginally attached workers poses a potential threat to the overall health of the U.S. labor market. If this trend continues unabated, it could signal deeper underlying issues that need to be addressed. As the job market becomes more competitive, policymakers and economists must remain vigilant in monitoring key indicators to ensure the continued strength and stability of the economy.