While the outlook for jobs may be improving, U.S. employers seem to be hiring more temporary or contract workers over full-time employees who are entitled to benefits.
With the national unemployment rate just under 10%, many unemployed workers are eager to find job placement. Young workers, especially those out of college, are among the anxious job applicants who tend to accept temporary placement.
"In 2005, the government estimated that 31% of U.S. workers were already so-called contingent workers. Experts say that number could increase to 40% or more in the next 10 years," according to CNN.
There are several reasons suspected of influencing this hiring trend:
- Employers' want to limit their costs.
- Younger workers don’t intend spend their career with a single employer, so they are not opposed to temporary positions. They also tend to not have as much job experience, something even a temporary position could provide them with.
- Older workers who are eligible for Medicare are open to contract work because they do not have to rely on an employer for health coverage.
- The new health care reform legislation will require employers to provide health benefits to employees, not independent contractors.
Recently, there have been efforts to protect workers from being misclassified as independent contractors by employers who want to avoid providing employee compensation and benefits packages. For more information, read: