Contingent Workers: A New U.S. Employment Paradigm?

Recession Adds to Appeal of Short-Term Jobs

By MICHAEL LUO


NORCROSS, Ga. — Michael Sinclair knows that in a few months, his stint in the marketing department of a health care manufacturing company here north of Atlanta is set to end.
He has been with the company for only six months, but he is not dismayed. In fact, he actually prefers his life as an independent contractor — constantly being laid off and rehired, sometimes juggling multiple jobs — to his old corporate position.
“I think it’s far less risky than being in a full-time job somewhere and cut at will and left with nothing,” Mr. Sinclair said. “I see this as the way more people will work in the future.”

Economists believe that Mr. Sinclair’s situation has become increasingly common. What is known as “contingent work,” or “flexible” and “alternative” staffing arrangements, has proliferated, although exact figures are hard to come by because of difficulties in tracking such workers. Many people are apparently looking at multiple temporary jobs as the equivalent of a diversified investment portfolio.

The notion that the nature of work is changing — becoming more temporary and project-based, with workers increasingly functioning as free agents and no longer being governed by traditional long-term employer-employee relationships — first gained momentum in the 1990s. But it has acquired new currency in this recession, especially among white-collar job seekers, as they cast about for work of any kind and companies remain cautious about permanent hiring.

In just one snapshot of what is going on, the number of people who describe themselves as self-employed but working less than 35 hours a week because they cannot find full-time work has more than doubled since the recession began, reaching 1.2 million in December 2009, according to the Bureau of Labor Statistics. Economists who study flexible work arrangements believe that the increase has been driven in large part by independent contractors like Mr. Sinclair and other contingent workers, struggling to cobble together whatever work they can find.

As the economy continues its halting recovery and employers’ confidence remains shaky, economists believe that it is likely that the ranks of these kinds of workers will continue to grow.

Others, however, would vastly prefer permanent jobs. They have struggled to deal with the instability, the second-tier status often accorded contractors and other temporary workers and the usual lack of benefits. In most states, they are ineligible for unemployment insurance and worker’s compensation. Indeed, it is not at all clear that the shift to these kinds of arrangements is good for workers....

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http://www.nytimes.com/2010/04/20/business/economy/20contractor.html?scp=1&sq=independent%20contractors&st=cse

eom

In my contract position I had no vacation days, sick days, health coverage, pension, 401k.

A lot of people don't get UI because their contracts aren't long enough. It is a way to hire someone and save $10,000+ a year by not paying them benefits.

I made about 25 grand and my tax bill was five grand - a 25% 'discount' from my take home pay. :thumbsdown:

but anyone who has plans to marry, to have a family, to buy a home, to pay off massive college debt may have issues with these kinds of jobs..

Kids don't get sick only when Daddy/Mommy has a job, and mortgage payments need to be paid every month.

these jobs are not reliable, family-supporting jobs..they are not careers.

These jobs are the "handyman" jobs of our time.

the employee takes all the risks, and the employers get all the benefits of not having to have anything vested in their workforce.

As people age, these gigs often go away too, since older folks are not seen as "cutting edge/up-to-the-minute" employees.

These are throwaway people with throwaway jobs..

The Kleenex Workforce..

Whether as an 'independent contractor' (usually with no benefits)or a 'salaried' employee of a 'consulting firm' (with benefits lasting only as long as the gig).

The 'hiring process' is the same as for an FTE position: Resume Submittal - Resume Review - Phone Interview - Face Interview and then Selection or Rejection.

You go into a 3 or 6 month gig that depends on continued funding from the 'client' or the corporate whim of commitment to the 'project'. If you are lucky enough to have 'benefits' (i.e. Healthcare) sometimes they don't start until after 30 or 60 days.

Half way through the 'assignment' you have to start bugging the 'consulting firm' to start looking for another place for you to work in the event the current gig is not 'extended'.

No job is permanent. No Job is secure. When you are working you can pay your bills and live rather well. When you are not working you spend your time trying to figure out how the bills will be paid, looking for another 'gig' and eating mac-n-cheese.

The way things are now you not only compete against others in your city - state - region, you also need to compete against others from across the USA.

And worst of all you compete against others from outside the USA who work for pennies on the dollar compared to what would have to be paid to an American worker.

Contingent work is nothing more then a way for Corporate America to show a good bottom line at the expense of the worker.

Town to town, job to job. No security - our families worse off than ever.

and starting micro-economies in our communities.