One of the most surprising aspects of this movement toward part-time work is how few white-collar people — including economists and policy analysts — have seemed to notice or appreciate it. So entrenched is the assumption that full-time work is on offer for most people who want it that even some Bureau of Labor Statistics data calculate annual earnings in various sectors by taking the hourly wage reported by participating employers and multiplying it by 2,080, the number of hours you’d work if you worked 40 hours a week, 52 weeks a year. Never mind that in the real world few workers in certain sectors are given the option of working full-time.
The shift to part-time works means that focusing exclusively on hourly pay can be misleading. Walmart, for example, paid frontline hourly employees an average of $17.50 as of last month — and recently announced plans to raise that to more than $18 an hour. Given that just a few years ago, progressives were animated by the “Fight for $15,” these numbers can seem encouraging. The Bloomberg columnist Conor Sen wrote on social media last year that “Walmart’s probably a better employer at this point than most child care providers and a lot of the jobs in higher ed.”
The problem is that most Walmart employees don’t make $36,400, the annualized equivalent of $17.50 an hour at 40 hours a week. Last year, the median Walmart worker made 25 percent less than that, $27,326 — equivalent to an average of 30 hours a week. And that’s the median; many Walmart workers worked less than that.
Likewise, at Target, where pay starts at $15 an hour, the median employee doesn’t make $31,200, the annualized full-time equivalent, but $25,993. The median employee of TJX (owner of such stores as TJ Maxx, Marshalls and HomeGoods) makes $13,884. The median Kohl’s employee makes $12,819.
Those numbers, though low, are nevertheless higher than median pay at Starbucks, a company known for its generous benefits. To be eligible for those benefits, however, an employee must work at least 20 hours a week. At $15 an hour — the rate Starbucks said it was raising barista pay to in 2022 — 20 hours a week would amount to $15,600 a year. But in 2022 the median Starbucks worker made $12,254 a year, which is lower than the federal poverty level for a single person.
