As the United States begins to come out of the recession, more and more workers are finding employment -- but the new jobs are frequently temporary jobs or freelance assignments -- work that requires workers, and their families, to be ready for anything. For example, Business Week reported Friday that in April, the number of Americans working at temporary jobs (many of whom were hired by the Census Bureau for the 2010 Census) rose by 26,200. Many workers are having to live with the reality that they may have to relocate, or travel, for a short-term job or freelance assignment. The new focus on temporary contract work may herald a rise in the demand for short-term apartment leases, temporary storage spaces, and reliance on cell phones and the use of wireless mobile data cards that can access the Internet. Working on a temporary basis may also spur some Americans to be more careful about saving money for an uncertain future, but it may send others spiraling into an ever-increasing amount of credit card debt.
While some people find the lack of job security in temporary work unnerving, others love the stimulation and constant change. Marketer Michael Sinclair told The New York Times that he prefers working as an independent contractor to his old nine-to-five job, which wasn't as secure as it felt at the time.
"I think it's far less risky than being in a full-time job somewhere and cut at will and left with nothing," Sinclair said, contrasting full-time work with temporary part-time contracts. "I see this as the way more people will work in the future....you can't really rely on a company. I think too many people, even in this day, still think you can rely on a company for security."
Many workers, however, resent the endless hunting for work that goes with life as an independent contractor, and worry about the lack of benefits such as a 401(k) retirement plan, health insurance, and paid vacations and sick days.
"I have steak days, and I have peanut butter days," Bob Longo, a former divisional sales training manager, told The New York Times. "When times are good, times can be really good. But when times are bad, they can be really lean."
Whether they relish the independent lifestyle or resent it, here is how many temporary workers are handling the transition:
- They save as much money as they can when they have work.
- They downsize their homes, living in the smallest space they can afford, to keep costs low at times when money is tight. They put the things that can't be kept in the smaller living space into storage units.
- In some cases, independent contractors who live alone are renting apartments on short-term leases, going month-to-month or in three-month increments, since they are not sure that they will have the same job or need to live in the same area for any longer than that.
- When times are good, they make sure to catch up on medical appointments, household repairs, and other expenses that might previously have been deferred.
- To keep overhead costs low, they cancel unnecessary "utilities," such as a second phone line and cable television access. Instead, many independent contractors are relying on their cell phones as a primary line, and get all their news and video from the Internet.
- They live frugally, buying nonperishable household items, such as toilet paper and cleaning supplies, in bulk, and keeping an eye out for coupons and grocery sales.
- They cook for themselves as much as possible, rather than eating out.
- Rather than hiring afterschool childcare, many families have at least one "double shifting" parent -- a parent who works a first shift while the children are in school, and a second shift after they go to bed, in order to be able to spend time with children after school and in the early evening.
How long is this way of life likely to last? Some analysts think it will become normal for a significant minority of the population.
"It's cheaper to hire contingent workers, but also more flexible for employers," Georgia State University public policy professor Bill Kahnweiler told MSNBC on Thursday. Employment law firm Littler Mendelson is predicting that half of the new jobs that are created as the recession ends will be temporary jobs, and that up to 35 percent of the work force may end up being composed of independent contractors and temporary workers doing jobs on a project-by-project basis.
Sources used:
Luo, Michael. "Recession adds to appeal of short-term jobs." The New York Times. April 19, 2010.
Tahmincioglu, Eve. "Need a job? Contract work could be new normal." MSNBC. May 6, 2010.
"U.S. economy: payrolls jump by most in four years (update 2)." Business Week. May 7, 2010.