The New World Of Work Where Millions Aren’t Traditional Employees

Time has seen changing conditions and types of work, according to the latest data and statistics from the Bureau of Labor Statistics (BLS). Many millions no longer work for a given company. Instead, they have looser associations with businesses, often working for multiple clients with less rigid arrangements than traditional employees.

Better understanding the categories and the number of people involved in these areas is critical as political fights have kicked up over how some of these developments should look and whether a bulk of self-employed business owners should be forced into presumed traditional jobs that don’t actually exist, undermining an important part of the economy.

Contingent work

BLS categorizes people into two overall categories: contingent work and alternative work arrangements.

There are people in contingent work. They have no implicit or explicit contract for ongoing work. Those who are wage or salary workers say the jobs are temporary and not expected to last. Seasonal workers working retail during the holiday sales season would be an example.

People with these positions as their sole or main jobs comprise 6.9 million, or 3.8% of total employment. Another 1.1 million have contingent work as the second job out of two or more. They make up 12.8% of total multiple job holders.

Contingent workers tend to be younger. Of working people from 16 to 24 years of age, 12.9% do contingent work. Compare that to 25 to 54 years (3.1%) and 55 years and over (2.6%).

Alternative work

There are four types of alternative work arrangements.

Independent contractors — also known as consultants or freelance workers — provide services to companies. They may be self-employed or wage or salary workers. BLS didn’t provide a further breakout, which may not have been available from the survey. Those who do independent contracting as their only or main work comprise 11.9 million, or 7.4% of total employment. Another 1.9 million, or 22.8% of people with multiple jobs, are independent contractors as their second jobs. Independent contractors are more likely older: 2.2% of 16 to 24; 25 to 54 years, 6.9%; and 55 and over, 11.5%.

On-call workers are called into work only when needed. They may be scheduled to work several days or weeks in a row. Those with such a position as their main or only work comprise 2.8 million, or 1.7% of total employment. Another 348,000, or 4.2% of multiple job holders, have this type of work as their second job. The percentages are fairly even across age groups: 16 to 24, 1.8%; 25 to 54 years, 1.6%; 55 and older, 1.9%.

Temporary help agency workers are paid by a temporary help agency, whether or not their job is temporary. There are 945,000, or 0.6% of all workers, who do this as their main or only work. Another 118,000, or 1.4% of multiple job holders, have this as their second job. Similar to on call, there isn’t a lot of difference between age groups: 16 to 24, 0.5%; 25 to 54, 0.6%; and 55 or older, 0.4%.

Finally, there are workers employed by a company that provides them or their services to others under contract. They are usually assigned to only one customer and typically work at that customer’s worksite. About 862,000, 0.5% of total employment, do this type of work as their sole or main work. Another 26 million, or 0.3% of multiple job holders, have this as their second job. For 16 to 24, it’s 0.6%; 0.5% of 25 to 54 years; and 0.6% of those 55 or older.

Data source

The data comes from the July 2023 supplement to the regular Current Population Survey by the Census Bureau. The two overall groups were measured separately. A person could have an alternative employment arrangement that might or might not be contingent. Similarly, a contingent worker might or might not be in an alternative employment arrangement.