News / USA

US Freelance 'Perma-Temp' Economy Takes Hold

In US, a Freelance 'Perma-Temp' Economy Takes Holdi
X
October 24, 2013 9:05 PM
A shift from full-time permanent employment to part-time temporary work has swept the U.S. economy, gathering speed since the 2008 financial crisis. One in three American workers is now either freelance, a project-based contractor or permanently temporary, according to the Freelancers Union, a private non-profit group. Most do not have benefits or security. VOA’s Carolyn Weaver profiles two New York professionals who are finding only short-term work - one at the beginning of her career, and another who thought he was near the end of his.
Carolyn Weaver
Harry Zupnik, an information technology specialist who lives in a New York City suburb, was laid off in 2007 from a large telecommunications company. “Since then, a little over six years, I’ve had approximately 24 months of employment,” he said. “And all the employment I’ve had has been project-related, temporary jobs: Come in, do a project, finish it, get out.”

Zupnik had hoped to be semi-retired by the time he turned 60. Instead, he’s afraid to turn down any job that comes his way. “I spend all of my time scrambling,” he said. “When I’m not working, I’m afraid to take vacations. I’m afraid because of the cost, and I’m afraid to take vacations because, oh my gosh, I might miss a project opportunity.”

Zupnik is one of the millions of Americans whose work lives have shifted radically in recent years. One in three working Americans now is part-time, freelance, in a temporary or project-based job, or employed as a “perma-temp,” according to the Freelancers Union. Most have no job security or benefits, such as employer-subsidized health insurance or a pension plan. The Harvard Business Review recently called it by far the fastest-growing segment of the U.S. job market.

The numbers are expected to grow, in part because of a mandate in the new health care reform law, the Affordable Care Act, requiring companies with more than 50 employees to offer health insurance only to those who work at least 30 hours a week.

Peter Capelli, a professor of management at the University of Pennsylvania’s Wharton School, said the change began in the 1980s, with the first wave of restructuring and outsourcing, together with the decline of unions and skilled manufacturing jobs.

“It has pushed the uncertainty that business copes with onto the work force,” he said in an interview over Skype. “Companies don’t know for sure these days whether demand will be up or down, or how long projects will last. It used to be that they carried workers in the life-time employment arrangements. When business went down, they kept them around. Now they don’t.”

Corinne Pulicay, half Harry Zupnik’s age, is in a similar bind. Last year she quit a full-time job because it had no promotion potential. Now she’s struggling to support herself while she studies textile design and marketing part-time.

“I’ve had trouble finding a steady job doing the same thing I used to do, doing production art, so I’ve had to resort to doing a variety of temp jobs,” she said. “I think people of my generation are very disillusioned. I don’t think there’s any expectation that we’ll get Social Security benefits in the future. I know a lot of my peers who, along with their day jobs, wait tables or tend bar, or are on more than one freelance gig.”

“We’re not really good as individuals at accommodating uncertainty,” said Capelli. “Most people don’t have the deep financial pockets that might make it reasonable to do. It’s not good for employees. The employers prefer it, and think it helps them remain competitive. So, it’s a winners and losers story here, and the employers have been winning and the employees have been losing.”

Zupnik points to the pressure businesses feel from Wall Street and their stockholders to increase profits by cutting labor costs.

“They’re justifying it by the bottom line, by the fact that they’re looking at short-term measurable financial results, and not at long-term value creation. There are intense pressures from Wall Street to perform and to perform now. And when you fail to perform, these companies are punished,” he said.

There is a world of difference in the lives of all those who work at irregular or “contingent,” jobs. Day laborers, many of them undocumented immigrants, wait on certain corners in Brooklyn, Queens and the Bronx every morning in hopes of picking up a day’s work on a building site, or cleaning houses. Others must arrive before dawn at blue-collar temp agencies, like Manpower, and are bused out to non-skilled jobs in warehouses or factories.

Meanwhile, some well-paid professionals choose a freelance life. Interior designer Clare Donahue, for example, has worked as an independent contractor for 30 years, shrugging off anxious family members who urged her to get a regular job. Paradoxically, her employment now seems more secure than her sister’s, who always had a regular job, said Donahue.

“She has struggled for security her whole life, and yet she’s ended up moving from job to job. She’ll start at a job, the company will be bought, they’ll start laying people off, and then everyone is fired. You go through this cycle again and again,” she said.

As for herself, Donahue isn’t as confident about the future as she once was.

“I’ve never felt really insecure until recently,” she said. “It’s a different situation for me now than it was when I started out 30 years ago. It may come to a point where there’s no safety net at the end where you need it. If I were injured, if I retired and needed help, there’s no guarantee now that anything will be there.”

For Harry Zupnik, who recently took a temporary job in Buffalo, one of the most distressing aspects of the new economic landscape is that even the projects he does land are limited in scope, and don’t give him an opportunity to use all his skills. His struggle for employment touches every part of his life, he said.

“It’s very tiring, it’s affected my family life, my friendships, my relationships, my self-confidence, the way I feel about myself when I walk down the street,” he said.

Corinne Pulicay is currently checking copyrights for a textbook  publisher, but that project will be done in a few months. She doesn’t know if she will be able to find a good full-time job with benefits, even after she graduates with an associate’s degree.

“It’s scary,” she said. “I think a new economic system is being born, where you have to sort of fend for yourself economically, you have to hustle and find new avenues of making an income. But you know some people are better at that than others, and what if you’re not one of those people, what happens to you?”

You May Like

Video For West Ukraine City, Conflict Far Away Yet Near

Physically and culturally close to Western Europe, Lviv feels solidarity with compatriots in country’s east but says they need to decide own future More

West African Women Disproportionately Affected by Ebola

Women's roles in families and the community put them at greater risk for contracting the disease, officials say More

Video NASA's MAVEN Spacecraft Arrives at Mars

Mars Atmosphere and Volatile Evolution craft will measure rates at which gases escape Martian atmosphere into space More

This forum has been closed.
Comment Sorting
Comments
     
by: Yoshi from: Sapporo
October 24, 2013 9:27 PM
Yes, employers win and employees lose. Yes, financial results are first and value creation is second. All business seek efficiency, and at last work force could not be exceptional. These are the destiny of capitalism so that we seem should found the other type of economic system. What is that? I guess business activities should be more regurated for example by federal government to perspect whole nations.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
NASA’s MAVEN Probe Enters Mars Orbiti
X
September 22, 2014 9:20 PM
NASA’s newest Mars probe, called MAVEN, has successfully entered its designated orbit around the Red Planet. Scientists will use its sophisticated instruments to try to learn what happened to the atmosphere Mars had a few billion years ago. VOA’s George Putic has more.
Video

Video NASA’s MAVEN Probe Enters Mars Orbit

NASA’s newest Mars probe, called MAVEN, has successfully entered its designated orbit around the Red Planet. Scientists will use its sophisticated instruments to try to learn what happened to the atmosphere Mars had a few billion years ago. VOA’s George Putic has more.
Video

Video For West Ukraine City, Conflict Far Away Yet Near

The western Ukrainian city of Lviv prides itself on being both physically and culturally close to Western Europe. The Russian-backed separatists in the eastern part of the country are 1,200 kilometers away, and seemingly even farther away in their world view. Still, as VOA’s Al Pessin reports, the war is having an impact in Lviv.
Video

Video Saving Global Fish Stocks Starts in the Kitchen

With an estimated 90 percent of the world’s larger fish populations having already vanished, a growing number of people in the seafood industry are embracing the concept of sustainable fishing and farming practices. One American marine biologist turned restaurateur in Thailand is spreading the word among fellow chefs and customers. VOA Correspondent Steve Herman reports from Bangkok.
Video

Video Chinese Admiral Key in China’s Promotion of Sea Links

China’s President last week wrapped up landmark visits to India, Sri Lanka and Maldives, part of a broader campaign to promote a new “Maritime Silk Road” in Asia. The Chinese government’s promotion efforts rely heavily on the country’s best-known sailor, a 15th century eunuch named Zheng He. VOA's Bill Ide reports from the sailor’s hometown in Yunnan on the effort to promote China’s future by recalling its past.
Video

Video Experts Fear Ebola Outbreak ‘Beyond Our Capability to Contain’

Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Natural Gas Export Plan Divides Maryland Town

A U.S. power company that has been importing natural gas now wants to export it. If approved, its plant in Lusby, Maryland, would likely be the first terminal on the United States East Coast to export liquefied natural gas from American pipelines. While some residents welcome the move because it will create jobs, others oppose it, saying the expansion could be a safety and environmental hazard. VOA’s Deborah Block examines the controversy.
Video

Video Difficult Tactical Battle Ahead Against IS Militants in Syria

The U.S. president has ordered the military to intensify its fight against the Islamic State, including in Syria. But how does the military conduct air strikes in a country that is not a U.S. ally? VOA correspondent Carla Babb reports from the Pentagon.
Video

Video Iran, World Powers Seek Progress in Nuclear Talks

Iran and the five permanent members of the U.N. Security Council plus Germany, known as the P5 + 1, have started a new round of talks on Iran's nuclear program. VOA State Department correspondent Pam Dockins reports that as the negotiations take place in New York, a U.S. envoy is questioning Iran's commitment to peaceful nuclear activity.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid