WASHINGTON (AP) — While the U.S. economy has improved since the Great Recession ended five years ago, part-time and “contract” workers are filling many of the new jobs.
Contract workers made up less than half of one percent of all U.S. employment in the 1980s but now account for 2.3 percent. Economists predict contract workers will play a larger role in the years ahead.
They are a diverse army of laborers, ranging from janitors, security officers, home-care and food service-workers to computer programmers, freelance photographers and illustrators. Many are involved in manufacturing. Many others are self-employed, working under contracts that lay out specific responsibilities and deadlines.
Labor leaders and many economists worry. Contract workers have less job security and don’t contribute to the economy through spending as much as permanent, full-time workers. Nor do they have the same job protections. Few are union members.
“It is not hugely clear that we’re coming into a temp-worker, contract-worker, contingent-worker nation. But it’s something to keep an eye on,” said Heidi Shierholz, an economist with the labor-oriented Economic Policy Institute. “There’s definitely been an increase in the share of those working part time.”
Part-time and contract jobs in the past tended to rise during recessions and recede during recoveries. But maybe no longer: Part-time workers have accounted for more than 10 percent of U.S. job growth in the years since the recession officially ended in June 2009. Meanwhile, union membership has been sliding steadily since the mid-1980s.
Businesses often hire contract workers or freelancers because it is less expensive than hiring full-time workers.
“Workers increasingly serve businesses that do not officially ‘employ’ the worker — a distinction that hampers organizing, erodes labor standards and dilutes accountability,” said Catherine Ruckelshaus, general counsel for the National Employment Law Project, which advocates on behalf of low-wage workers.