A revealing look at the decline in formal employment in favor of
hiring contractors, freelancers, temps, and marginal workers, who are
excluded from traditional benefits and career ladders.
Companies cannot exist without workers, but they are increasingly
reluctant to have employees. Instead of providing the benefits and
protections that have traditionally come with employee status,
businesses are turning to tactics that let them treat people as
interchangeable parts, to be used and discarded as needed. Drawing on an
original survey of over 6,000 workers, Disposable Workers: The Transformation of Employment (Harvard University Press, 2026) reveals
the striking extent of this transformation across the occupational
hierarchy, affecting everyone from janitors to nurses.
Paul Osterman identifies three distinct categories of disposable
workers: contractors, freelancers, and marginal employees. The marginal
category, unique to Osterman’s analysis, describes workers who are
employees from a narrow legal standpoint but are held at arm’s length by
their firm—left without job security, skill training, or opportunities
for promotion. Many low-wage service workers toil in marginal jobs, but
so do white-collar professionals such as adjunct university faculty and
staff attorneys at law firms. When the three categories are added up,
they account for more than 35 percent of the American workforce.
Not all disposable workers object to their arrangements. But most
contractors and marginal employees would prefer standard employment, and
there is a significant cost to their current status. In response, Disposable Workers
offers a range of policy recommendations, including mechanisms to
prevent over-reliance on contracting and freelancing as well as reforms
to improve job quality for part-timers and marginal employees. As the
deconstruction of employment affects more and more workers, the
importance of such measures will only grow.
Paul Osterman is Professor Emeritus of Human Resources and Management
at the MIT Sloan School of Management. His numerous books include Good Jobs America, Who Will Care for Us? (Russell Sage, 2011); and The Truth about Middle Managers (Harvard Business School Press, 2009), Who Will Care For Us: Long Term Care and the Long Term Workforce (Russell Sage,2017), Gathering Power: The Future of Progressive Politics in America (Beacon Press, 2003); Securing Prosperity: The American Labor Market: How It Has Changed and What to Do About It (Princeton University Press, 1999), and Working In America: A Blueprint for the New Labor Market (MIT Press, 2001).
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