Income and Household demographics of Part-Time Workers

Contrary to the stereotype of all part-time workers being low-income, a significant portion resides in households with substantial financial resources. While some part-time workers do face economic hardship, with some single individuals earning as little as $1,120 per month and some families of four earning $62,400 annually, many others live in more affluent households.

Data indicates that 42% of part-time workers are in households earning above 400% of the federal poverty level (approximately $124,800 for a family of four), while 24% are in households exceeding 600% of the poverty level (around $187,200 for a family of four).

“Sixty-five percent of part-time workers live in a household with a full-time adult worker.”

Industries and Occupations of Part-Time Workers

Part-time workers are concentrated in specific sectors of the economy. Approximately one-third (33%) are employed in service occupations, with food planning and service roles being the most prevalent (15%). Other common occupations include office and administrative support (13%), sales (12%), transportation and material moving (9%), and education, training, and library occupations (9%). Common job titles include cashier, waiter, retail salesperson, and personal care aide.

Looking at major industry categories, 31% of part-time workers are employed in education, health care, or social assistance. Another 21% work in arts,entertainment,recreation,or food services,while 17% are in wholesale and retail trade. The most common specific industries include restaurants and other food services; elementary and secondary schools; colleges, universities, and professional schools; hospitals (excluding psychiatric and substance abuse facilities); and supermarkets or other grocery stores.

Household Composition and Income Levels

A significant majority (65%) of part-time workers live in households with at least one full-time adult worker. These individuals are considerably less likely to have household incomes below 200% of the federal poverty level compared to those without a full-time worker in their household (18% vs. 52%).

Health Insurance Coverage Among Part-Time Workers

Part-time workers face challenges in accessing health insurance coverage compared to their full-time counterparts. They are less likely to have employer-based coverage, either through their own job or as a dependent on another plan. Furthermore, they are less likely to work for an employer that offers health coverage to any employees, and even if their employer offers coverage, they may not be eligible to enroll.

54% of part-time workers have employer-based health coverage, compared to 78% of full-time workers. This disparity is even more pronounced for part-time workers living in households without a full-time worker, as onyl 36% have employer-based coverage, compared to 63% of those in households with at least one full-time worker. Only 19% of part-time workers have employer-based coverage through their own jobs, compared to 62% of full-time workers.

Consequently, part-time workers are more likely to be uninsured than full-time workers (13% vs. 9%). Among part-time workers, those living in households without a full-time worker are more likely to be uninsured (17%) than those living with a full-time worker (11%). Part-time workers are also more likely to be covered by Medicaid (21%) or direct-purchase plans (12%) compared to full-time workers (7% and 6% respectively). Direct purchase coverage is typically obtained through the ACA marketplaces and often includes tax credits to subsidize premiums, based on income.

Employer-Based Coverage: Offers and Enrollment

A key factor contributing to the lower rates of health coverage among part-time workers is that they are less likely to work for employers who offer health benefits. Only 60% of part-time workers work for an employer that offers health insurance, compared to 84% of full-time workers.

Even among part-time workers who work for an employer offering health benefits, only 64% are eligible to enroll. The primary reasons for ineligibility include insufficient hours worked per week or weeks per year (84%), being a contract or temporary employee (8%), or not having worked for the employer long enough to become eligible (5%).

Therefore, only 60% of part-time workers work for an employer that offers health insurance, and of those, only 64% are actually eligible for coverage. only 19% of part-time workers are covered by their own employer. Among eligible part-time employees who decline coverage, 68% cite having other coverage as the reason, while 28% find the coverage too expensive.

Part-time workers, particularly those in households without a full-time worker, often have lower incomes and are less likely to have job-based health plans. even when coverage is offered, many cite cost as a barrier to enrollment, struggling to afford premiums or cost-sharing. While those with employer-sponsored plans spend an average of 3.9% of their income on premiums and cost-sharing, the burden is higher for lower-income households. Fifteen percent of workers have household incomes below 200% of the federal poverty level.

Employer-sponsored insurance remains crucial for non-elderly working adults, but lower-income workers and part-time employees face significant challenges in accessing it. For those ineligible for or unable to afford job-based coverage, potential federal policy changes could further limit options. Changes to Medicaid and the Affordable Care Act could result in 10 million more people becoming uninsured by 2034. Additionally, if enhanced premium tax credits for ACA Marketplace coverage are not extended beyond 2025, an additional 4.2 million people are expected to lose coverage.

Some employers have taken steps to improve coverage accessibility for low-wage workers. In 2024, 14% of firms with 200 or more employees offered plans with reduced benefits and low premium contributions specifically designed to be affordable for low-wage workers. Additionally, some firms provide voluntary benefits to part-time workers outside of their standard health plans, such as financial assistance for hospitalization or specialized services like telehealth. In 2024, 3% of small firms and 14% of large firms that did not offer standard coverage to part-time workers offered a voluntary benefit. Despite these efforts, access to employer-sponsored health benefits remains a significant challenge for many part-time workers.