A part time job has always been a position for young people in school or just entering a company. At that age, many have little need for medical care; I remember I rarely used it. UPS is one of the few companies in America that offers the kind of benefits to part time employees that allow them even to retire. I admit that the low starting salary is failing to attract quality applicants, but the huge costs of benefits for employees forces the company to find cost savings somewhere.
Most 18 to 25 year olds don't care about health care, pension or 401k... They care about Myspace, Wii and Halo 3... A job starting at $8.50 an hour isn't very attractive...