US Employers Treat Over 1 in 3 Workers as Disposable, New Book Reveals
In his book 'Disposable Workers: The Transformation of Employment,' MIT Sloan Professor Emeritus Paul Osterman uncovers that more than one-third of the workforce in the U.S.—approximately 57 million individuals—are regarded as disposable. Drawing from a survey conducted in late 2022 involving over 6,000 respondents and nearly 100 stakeholder interviews, he classifies these workers into three categories: contractors (13%), freelancers (5%), and marginal employees (17%), including roles such as concierges, cleaners, and Uber drivers. This phenomenon arises from employers reducing costs on benefits and training, which results in diminished pay and job satisfaction. The book also highlights a rise of 500,000 part-time workers following the Affordable Care Act's implementation in 2014. Additionally, New York City and New Jersey are challenging Amazon's subcontracting practices.
Key facts
- Over 1 in 3 U.S. workers are treated as disposable, totaling just under 57 million out of 162 million.
- Paul Osterman's book 'Disposable Workers: The Transformation of Employment' is based on a 2022 survey of over 6,000 people and interviews with nearly 100 workers, employers, and policymakers.
- Three categories: contractors (13%), organizational freelancers (5%), and marginal workers (17%).
- Examples include concierges, building cleaners, security guards, travel nurses, Uber/Lyft drivers, adjunct professors, and staff attorneys.
- In 1970, 73% of college instructors had tenure or tenure-track jobs; by 2021, only 32% did.
- Part-time workers earn nearly 20% less hourly than full-timers, with benefits gap adding another 5%.
- Affordable Care Act led to a 500,000 increase in part-time workers in retail, hotels, and restaurants.
- McKinsey 2023 report claimed 5% of employees deliver 95% of an organization's value.
- Disposable workers have lower pay and job satisfaction; contractors and marginal workers are less satisfied than regular workers.
- Public costs include higher hospital infection rates and industrial accidents when cleaners are contractors.
- New York City and New Jersey are targeting Amazon's use of subcontractors for drivers.
Entities
Artists
- Paul Osterman
Institutions
- MIT Sloan School
- Massachusetts Institute of Technology
- The Conversation
- PepsiCo
- Uber
- Lyft
- McKinsey
- Amazon
- New York City
- New Jersey
Locations
- Boston
- United States