1 in 3 US workers have ‘disposable’ jobs: An economist outlines the public costs

One in three U.S. workers are classified as "disposable," according to a labor economist whose research highlights the growing prevalence of precarious employment arrangements. The term refers to individuals whose positions are treated as temporary or expendable by their employers, with little to no guarantee of long-term stability or career advancement. These workers are spread across multiple sectors, including construction, healthcare, retail, and academia, and their presence has become increasingly common in the modern U.S. workforce. The researcher conducted a nationwide survey involving over 6,000 participants and interviewed nearly 100 workers, employers, and policymakers to better understand the nature and scale of disposable employment. The findings reveal that more than one-third, just under 57 million, of the country's 162 million full- or part-time workers fall into this category. These individuals are typically engaged in roles that lack formal commitments to their future within the organization, whether through limited career progression, unstable hours, or conditional job security tied to specific projects or economic conditions. Disposable employment manifests in three distinct forms. First, there are contractors who are employed by staffing agencies but assigned to work at clients' locations. These workers include temporary office staff, building cleaners, and security personnel. While some, such as travel nurses, receive competitive compensation, many others face low wages and minimal benefits. According to the study, contractors make up approximately 13% of the total workforce. Second, the category includes freelancers who operate independently, working for companies, organizations, or agencies without being formally classified as employees. Examples range from ride-share drivers and food delivery couriers to software developers and freelance writers. These individuals often navigate flexible schedules and variable income streams. The survey indicates that freelancers constitute around 5% of the workforce, though the definition excludes independent contractors who work directly for private individuals, such as pet walkers or handyman services. Third, the largest segment consists of marginal workers, defined as those employed by companies but lacking clear pathways for career growth or job security. These roles are often structured with high turnover rates, making them inherently unstable. Marginal workers account for roughly 17% of the workforce, and their employment arrangements are frequently indistinguishable from traditional full-time positions despite their transient nature. Examples of marginal workers include staff attorneys in law firms, who are hired for specific cases but rarely progress toward partnership. Similarly, adjunct professors at educational institutions often serve as temporary replacements for full-time faculty, with few opportunities for long-term academic advancement. In 1970, tenure or tenure-track positions accounted for 73% of university faculty, but by 2021, that share had dropped to just 32%, leaving the majority in non-permanent roles. Part-time workers also exemplify marginal employment. Employers often prefer part-time hiring for cost efficiency, as these positions typically offer lower wages compared to full-time equivalents. On average, part-time workers earn nearly 20% less per hour than their full-time counterparts, even after accounting for factors such as age, education, and industry. When benefits are included, the disparity widens further, reinforcing the financial vulnerability of these workers. The implications of disposable employment extend beyond individual hardship, affecting broader societal and economic structures. As the trend continues, concerns grow regarding income inequality, access to social safety nets, and the sustainability of current labor market practices. The researcher emphasizes the need for policy interventions aimed at improving worker protections and promoting more stable employment models.