Gone are the days when temporary labor meant the image of the "Kelly Girl," administrative personnel who can fill in for a few days. Today, the number of professionals being hired on a contingent basis is on the rise.
Coming out of the last recession, the percentage of jobs that were temporary, contract or contingent was about 8%. Now, coming out of the Great Recession, that percentage has risen to 13%.
With this type of job situation, employers tend to feel a lot more flexibility and can calculate their upfront costs. Additionally, if they let that contingent or temporary person go, there's no increase in their unemployment. Also, they are not paying benefits. Employers realize that they're not incurring any costs other than that worker's wages.
There are projections that the percentage of the workforce that are contingent workers could rise to as high as 40% nationwide. Tremendous uncertainty across industries and global competition is what is leading the increase in contingent labor. Now, as the Affordable Care Act looms large, many employers are going to want to keep employees off their payroll and under the 30-hour cut off for mandatory health coverage.
In some ways, contingent labor is both a product of--as well as a way out of--StagNation. For employees, contingent labor can bring a measure of opportunity for them as well. "Temporary labor" is rapidly dissolving and direct and contract employees are learning to work together effectively in all organizations. Even in terms of perks, like health insurance and vacation time, the divergence between direct and contingent employees is narrowing as large companies don't feel the pressure to provide a high level of benefits. Additionally, once the Affordable Care Act kicks in and everyone is getting benefits--or not, depending on which stance a company takes--the lines will begin to blur even more.
Source: Cash Nickerson: StagNation
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