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

    Escalation of Media Crackdown in Turkey Heightens Concerns

    Critics see 'a new dark age' as arrests of journalists, closures of media outlets by Erdogan government mount

    Russia Boasts of Troop Buildup on Flank, Draws Flak

    Russian military moves counter to efforts to de-escalate tensions, State Department says

    Video Iraqis Primed to March on Mosul, Foreign Minister Says

    Iraqi FM Ibrahim al-Jaafari tells VOA the campaign will meet optimistic expectations, even though US officials remain cautious

    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.
    Immigrant Delegate Marvels at Democratic Processi
    X
    Katherine Gypson
    July 27, 2016 6:21 PM
    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video Immigrant Delegate Marvels at Democratic Process

    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video A Life of Fighting Back: Hillary Clinton Shatters Glass Ceiling

    Hillary Clinton made history Thursday, overcoming personal and political setbacks to become the first woman to win the presidential nomination of a major U.S. political party. If she wins in November, she will go from “first lady” to U.S. Senator from New York, to Secretary of State, to “Madam President.” Polls show Clinton is both beloved and despised. White House Correspondent Cindy Saine takes a look at the life of the woman both supporters and detractors agree is a fighter for the ages.
    Video

    Video Dutch Entrepreneurs Turn Rainwater Into Beer

    June has been recorded as one of the wettest months in more than a century in many parts of Europe. To a group of entrepreneurs in Amsterdam the rain came as a blessing, as they used the extra water to brew beer. Serginho Roosblad has more to the story.
    Video

    Video First Time Delegate’s First Day Frustrations

    With thousands of people filling the streets of Philadelphia, Pennsylvania for the 2016 Democratic National Convention, VOA’s Kane Farabaugh narrowed in on one delegate as she made her first trip to a national party convention. It was a day that was anything but routine for this United States military veteran.
    Video

    Video Commerce Thrives on US-Mexico Border

    At the Democratic Convention in Philadelphia this week, the party’s presumptive presidential nominee, Hillary Clinton, is expected to attack proposals made by her opponent, Republican presidential nominee Donald Trump, to build a wall along the U.S.-Mexico border. Last Friday, President Barack Obama hosted his Mexican counterpart, President Enrique Peña Nieto, to underscore the good relations between the two countries. VOA’s Greg Flakus reports from Tucson.
    Video

    Video Film Helps Save Ethiopian Children Thought to be Cursed

    'Omo Child' looks at effort of African man to stop killings of ‘mingi’ children
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Calm the Waters: US Doubles Down Diplomatic Efforts in ASEAN Meetings

    The United States is redoubling diplomatic efforts and looking to upcoming regional meetings to calm the waters after an international tribunal invalidated the legal basis of Beijing's extensive claims in the South China Sea. VOA State Department correspondent Nike Ching has the story.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.

    Special Report

    Adrift The Invisible African Diaspora