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The Rise Of The Contract Workforce (npr.org)
An anonymous reader shares a report: A new NPR/Marist poll finds that 1 in 5 jobs in America is held by a worker under contract. Within a decade, contractors and freelancers could make up half of the American workforce. Workers across all industries and at all professional levels will be touched by the movement toward independent work -- one without the constraints, or benefits, of full-time employment. Policymakers are just starting to talk about the implications.
[...] It's not just business driving the trend. Surveys show a large majority of freelancers are free agents by choice. John Vensel is a contract attorney at Orrick who grew up a few miles from Wheeling, on the other side of the Pennsylvania state line. In his 20s, he was a freelance paralegal by day and a gig musician by night. "I actually wanted to be a rock star," he says. But these days there are no edgy vestiges of a former rocker, only a 47-year-old family man cooing over cellphone photos of his children, Grace and Gabe. In the two decades in between, Vensel worked full-time corporate jobs. But he was laid off in 2010, on the eve of his graduation from his night-school law program. He graduated with huge piles of debt, into one of the worst job markets. For a time, Vensel commuted three hours round-trip to a full-time job in Pittsburgh. But more recently, he quit and took up contracting to stay near home in Wheeling.
[...] It's not just business driving the trend. Surveys show a large majority of freelancers are free agents by choice. John Vensel is a contract attorney at Orrick who grew up a few miles from Wheeling, on the other side of the Pennsylvania state line. In his 20s, he was a freelance paralegal by day and a gig musician by night. "I actually wanted to be a rock star," he says. But these days there are no edgy vestiges of a former rocker, only a 47-year-old family man cooing over cellphone photos of his children, Grace and Gabe. In the two decades in between, Vensel worked full-time corporate jobs. But he was laid off in 2010, on the eve of his graduation from his night-school law program. He graduated with huge piles of debt, into one of the worst job markets. For a time, Vensel commuted three hours round-trip to a full-time job in Pittsburgh. But more recently, he quit and took up contracting to stay near home in Wheeling.
I've worked hard, lived below my means, and saved ferociously for two decades now and I'm getting ready to retire with a 7 digit investment portfolio in a year or two before I'm 50. I feel sorry for the young people just entering the workforce, what a different scenario they will be facing with the Republican destruction of the social contract and delivering all power to corporate America. It's a much more lopsided equation than it used to be. As my late dad used to say, BOHICA. Bend Over Here It Comes Again.
For the last 15 years, I have been contract with short "real jobs" in the middle. But after 6 months to a year I have fixed the issues and it is maintenance. I do not like it, and they do not like paying my salary for it, so on to the next. Feeds my ADD. :)
Contract workers is effectively "try before you buy" on an employee. It's getting increasingly difficult to fire poor performing employees. Contract is a good bet for employers.
"Tempers are wearing thin. Let's just hope some robot doesn't kill everybody." --Bender
The situation sucks. Not only in the present but it was make the future suck as well because everyone caught in it are going to feel a crunch come retirement, if they ever do get to retire. There's no guarantees with the mighty 401(k) and IRA that are tied to market forces which we have no command or control over.
There are structural problems with our society that allow this to happen. It's not only coded in our employment laws but also in the anti-union bent of corporate profit imperatives. We want people to take responsibility for their own success but remove every single tool that might be used for that through black-letter law or through making it so expensive in seeking redress of wrongs it become untenable, even in principle, to see it done. We allow for unilateral NDAs to be upheld. We allow for so much to be hidden away that even if I were to invest the time (as if I had the time to invest) looking into a potential employer, I wouldn't find be able to find the problems they have.
So what do you want us to talk about here? We know about it. We work as well as we can within it. There's public outcry but no political will to do anything. This is the endpoint of 40 years of corporate political influence. What's there to be surprised about it?
So step up to independent escort and keep all the money. :) "Just be nice to the customer, Fancy, and they'll be nice to you!"
The dirty little secret of this trend is that it's happening because the employers increasingly getting away with policies that in past times would have been called mistreatment of their workforce. The American workforce has increasingly moved out of the blue collar industries that had fought long and hard for Regulatory and Union protections, to the comparatively unregulated and unprotected world of white collar drudgery. Things like Union protections and Pension Programs are a things of the past, and loyalty (in either direction) has been entirely removed from the equation.
The vast majority of people would not cast off the security of a large organization and take on all the risk of going freelance while there are alternative. But increasingly the Companies are asking for more and more from their employees and giving less and less in return, to the point where the Hassle&Restriction of a large organization out weights diminishing expectation of Job Security that is the whole point.
Common Sense isn't as Common as people think...
...if we had a basic floor by some mechanism, where someone couldn't fall below, leading to a semi-permanent drain on society, and a society that was unwilling to have people die for their own benefit.
You know, something closer to the biblical ideal espoused in the 'new testament' part of the most consistently referenced book in this nation, but with the freedoms espoused in the other largely revered document, our constitution.
A 'basic income' system would work, but some mix of unions/safety net if that wasn't possible could at least mitigate those falling through the cracks.
Education also helps - but everyone can be suckered, or just have the bad luck to be taken advantage of for too long. Even the smartest folks can live most of their lives in abject circumstances for the sake of loved ones, or ideals where that intelligence doesn't help them.
A more ideal case would be if everyone had some base line, could be sure that everyone they loved would at least survive in some level of comfort, and were free to help, not in the confines of a arbitrary-hour work week, but could use tools to be available whenever made sense, without fear of becoming bankrupt later in life for pursuing whatever they felt helped others the most.
Money should still matter - what folks are willing to reward more or less can still matter... but it shouldn't be increasingly the ONLY thing that matters, above life, death, and everything else.
Shared social value should matter for SOMETHING, shouldn't it?
Ryan Fenton
it sucked. Very inconsistent pay. He'd be on 9 months and off 3. Which is fine if you're in your 20s but not so much when you've got kids to raise. You're always playing catch up. I forget why but you can't get for unemployment.
You do not get it because you do not pay it. Unemployment insurance is taken out of your paycheck when you are full time, but not when you contract. One of those things you have to allow for when you negotiate the rate.
As for the gaps... They come. Every time. You know they are coming. If you do not have 3-6 months of expenses to draw from, you are asking for pain. And if you do not make enough to save that, cut your expenses or raise your rate.
The other problem was he could never get a raise because his contract agency had established how much he was willing to work for, so even if the job paid more the contract agency just pocketed the difference. He didn't have a degree so he needed a contract agency to get past the HR filters.
Get a new pimp! I work with several IT firms, and pick up gigs directly as well. The firms I work with know that low pay means they only get time left after the high pay guys get the cream... :) I get raises.
Right now it's dog eat dog here in the States. Whenever anyone suggests having the gov't step in and fix it they're shouted down as tax and spend liberals redistributing somebody else's wealth. We can't even get health care over here.
That is because everything the government has "fixed" so far is worse then when they started! :)
One amendment I'd make is for worker's comp. I'll agree one should not be *dependent* upon the employer, but on the other hand there does need to be an ever present knob to twist to have companies self-interest align with worker safety (hazardous environment in theory should translate to higher worker's comp premiums).
The health insurance linked to employer is just bonkers.
XML is like violence. If it doesn't solve the problem, use more.
So far as IT goes, I can say this highlights a very unfortunate trend. There is now an expectation that highly skilled workers in a very specific discipline are available to come out of the woodwork when they are called, that they will be grateful for whatever they can get, and then will quietly slink away to try to find and compete for an opportunity to work somewhere else. We are not talking about salaried contractors hired through a contracting firm, or about the traditional contract jobs of yore, where a self-employed contractor could expect to get the big bucks and make more than enough to carry them through the gaps until their next gig, swapping the job security for financial remuneration. The expectation now is that they will take these jobs, many paying no more than what is comparable for full-time employees (and with no benefits), and like it. In general, unless the remuneration is high enough to offset many other factors (such as the uncertainties and income insecurity, lack of benefits, and the lack of employer provided training) these contract engagements should only be taken as last resort. They tend to be bad economic choices for the worker in the same way that "rent-to-own" is a bad way to furnish your home.
I'm one of those strange people who prefers a full time job, with a steady paycheck. I know the absolute dollar value for contracts in my field is higher than I get as an FTE, but everyone I know doing contract work is constantly hustling for a new job and never knows where their money will be coming from. I work for an IT services company so I get tons of exposure to different projects. I'm not sure I'd feel the same way if I didn't get work that varied often, but knowing you're going to be paid and can cover your expenses is a relief. I'm not a natural salesman, and really don't want to be looking for work again 2 weeks into a 3-month contract. We employ contractors in some positions where I work, and it's not exactly a ringing endorsement of the contracting lifestyle overhearing them calling headhunters, juggling bills, etc.
People with families, houses and other fixed committments tend to favor steady income. Companies want a disposable, nomadic workforce that never puts down roots and can load their belongings into their car at a moment's notice. I'm strange in that I think it's a good idea for people to stick around, see their projects through, and get involved in the communities they live in. I know employer/employee loyalty is at an all-time low but it doesn't have to be. I think well-run companies that think long term (a minority, I know) don't really want a payroll full of mercenaries that they can't really count on. One of the best things that could happen through the tax code and accounting rules would be to encourage employment of FTEs over contractors. Right now, companies do everything they can to avoid hiring people because there's no incentive. If you made it so that retaining and paying employees is cheaper than a bunch of hired guns, lots of people would be much less stressed.