Patterns and Correlates of Unemployment and Underemployment Among Single-Mother Families

Background and Purpose

Unemployment and underemployment (e.g., poverty-level wages) are recognized as major stressors. These employment hardships adversely affect physical and mental health, and increase financial strain and material hardship particularly for single-mother families. The current economic crisis, recent policy trends of relying more on the private sector and less on government to assist families experiencing economic hardship suggest the importance of examining unemployment and underemployment. This is especially the case for low-income single-mother families affected by TANF welfare policies, which require most TANF recipients to enter the workforce as a condition for benefit receipt. Many of these mothers have low earnings, unstable employment, and continue to rely on public assistance. Rising levels of earnings inequality, part-time employment, and long-term unemployment all indicate the need for more research in this area. The purposes of this study are to examine long-term patterns of unemployment and underemployment and to identify factors associated with these employment problems among single-mother families.

Method

The 2004 longitudinal panels of the Survey of Income and Program Participation were used. The sample included single mothers who were at least 18 years old with at least one related child under the age of 18 at the first wave, and had completed interviews in all 12 waves (N=623). Weighted frequency distributions were used to examine patterns of unemployment and underemployment. Multinomial logistic regressions were used to examine individual and family characteristics, welfare history, and local characteristics associated with unemployment and underemployment compared to adequate employment (reference group).

We measured (1) adequately employed as continuously adequately employed (worked full-time or voluntarily part-time and earned above a poverty wage), continuously employed, but made a transition into stable adequate employment, and voluntary job gaps in which the months of adequate employment exceeded the months of underemployment (reference variable); (2) underemployed as continuously underemployed (worked full-time, but earned a poverty wage or worked involuntarily part-time), transitions into stable or unstable underemployment, and voluntary job gaps in which the months of underemployment exceeded the months of adequate employment, and (3) unemployed as continuously unemployed, and experiencing any involuntary separations or job gaps.

Results

The results indicate that while more than half (56%) of single-mothers were adequately employed, a substantial number were unemployment (29%) or experienced underemployment (15%). The results from the multinomial logistic regressions found that factors associated with unemployment and underemployment included age, education, previous work experience, race/ethnicity, work disability, homeownership, welfare history, residence in metro areas, and state unemployment rates.

Conclusions and Implications

The results of this study make unique contributions to better understanding patterns of unemployment and underemployment, and provide valuable insights into the factors associated with these employment-related outcomes. These results will have useful implications for single-mothers experiencing employment difficulties in the current social policy and economic environments. The results can inform social policy and strategy-related interventions to target those with high risk of unemployment and underemployment and to provide additional economic support and employment related services for these families.