The conventional full-time job is disappearing.
Survey research conducted by economists Lawrence Katz of Harvard University and Alan Krueger at Princeton University shows that from 2005 to 2015, the proportion of Americans workers engaged in what they refer to as “alternative work” jumped from 10.7% to 15.8%. Alternative work is characterized by being temporary or unsteady—such as work as an independent contractor or through a temporary help agency.
“We find that 94% of net job growth in the past decade was in the alternative work category,” said Krueger. “And over 60% was due to the [the rise] of independent contractors, freelancers and contract company workers.” In other words, nearly all of the 10 million jobs created between 2005 and 2015 were not traditional nine-to-five employment.
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Krueger, a former chairman of the White House Council of Economic Advisers, was surprised by the finding. The survey’s original goal was to quantify the size of the gig economy (0.5% and growing). The researchers were caught off guard by the tremendous growth of alternative work. There had been almost no change from 1995 to 2005.
Katz and Krueger found that each of the common types of alternative work increased from 2005 to 2015—with the largest changes in the number of independent contractors and workers provided by contract firms, such as janitors that work full-time at a particular office, but are paid by a janitorial services firm.
The decline of conventional full-time work has impacted every demographic. Whether this change is good or bad depends on what kinds of jobs people want. “Workers seeking full-time, steady work have lost,” said Krueger. “While many of those who value flexibility and have a spouse with a steady job have probably gained.”
For graphic designers and lawyers who hate going to an office, new technology and Obamacare has made it more appealing to become an independent contractor. But for those seeking a steady administrative assistant office job, the market is grim.
Women experienced an unusually large increase in the share of alternative work. They were three percentage points less likely than men to engage in alternative work in 2005, but two percentage points more likely in 2015. This is in large part because the sectors that saw the largest move towards alternative work arrangements—like education and medicine—have a high proportion of women.
The American work environment is rapidly changing. For better or worse, the days of the conventional full-time job may be numbered.
The term “created jobs” tends to be misleading for most people.
i.e. you can create a new job and claim new job creation -implying a gain- but that new job could, and often does, replace several old jobs that result in a decrease in jobs even though a new one was created.
A net loss in overall jobs hiding behind the shield of newly created jobs.
Yep. They always mention “jobs created”. Never jobs lost, or net change in jobs. Only “jobs created”.
As a business owner, this does not surprise me at all. Frankly, most business owners, if they could get away with it, would higher contract workers. The only reason they don’t is because of either security requirements (for a big client like the military), or because the IRS will define the person as needing to be a “hire”. Payroll companies are an expense, medical benefits are a ridiculous – mandated expense. Fair labor standards boards are a pain in the ass. Every local government drone is just salivating for the opportunity to catch you going afoul of some little regulation so they can send in their “auditors” and find something to fine you for. A lot of employees feel that they are entitled to everything because CNN told them so. They need to have special work space provisions because they are “disabled” or need FMLA because they have some “disability” like obesity, or are entitled to a month off because the “Europeans take holiday” etc.
Compare this to a contract worker. Usually have their shit together, because they want to have a robust pipeline of work. They are competing against others, so they are usually pretty sharp as well. No need for HR, payroll etc. Simply negotiate a rate or project price, provide what they need, then write check when complete. Does not get much simpler than that. And BTW, before I became a business “owner” I was a contractor. It is a great way to work if you are efficient, can manage your own affairs, have little self created drama, and can be an adult. Those that are chronic “employees” that feel they are entitled to a paycheck, those are the ones that can’t hack it.
Sorry, but that is the truth of the matter. Full time employment will not come back until people allow the hooks of government and entitlement to get out of the private sector.
I’ve done contract work, overall it’s awful. Some of the jobs paid well and were nice, but you can wait months or years between jobs during which time any gains you made are wiped away plus more. And none have any medical or dental and many of these jobs don’t pay near enough to afford it on your own. Horrible way to live.
Depends. I’m a consultant, and this year was lean to non-existent work between March and October. End of October the spigot turned on, and I’ve been working sixty+ hour weeks since then. The paychecks are much better now, and the fatigue is countered with a better bank balance.
I nearly went under this last time; had about $2000 left in casual cash when the tide turned. Now I’m paying down debt, making investments and filling in some gaps while Christmas shopping. Consulting / contracting is a TOUGH way to make a living, no doubt about it. But then, I’ve found I’m no good at corporate games, hate workplace politics and really don’t care enough to support deadwood with my efforts. If I do finally go under, I can go on welfare or drive a truck or something. But right now, I’d rather have freedom than a corporate boss – and compared with a caveman fighting leopards off a kill to get food, I’ve got it EASY.