Employers reduce hours and shift to part-time, avoiding layoffs as the economy slows.

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Robert Frick, an economist at Navy Federal Credit Union, mentioned that while employers may not be laying off many workers, they are indeed cutting back through other methods such as reducing hours and shifting workers to part-time as the economy slows.

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https://www.politico.com/news/2024/08/30/july-inflation-report-fed-jobs-market-00176790

The U.S. U-6 unemployment rate, also known as the underemployment rate, includes not only the unemployed but also those marginally attached to the labor force and individuals working part-time for economic reasons, reflecting broader labor market weaknesses.

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