Contingtent Workers, Contingent Worker Survey: Update and Resource Links

Contingent Workers in the US Economy

What do the rise in voter anger, flat wage growth, low inflation and high corporate profits all have in common.  They may be caused by the the rapid increase in contingent workers over the past decade.

A recent article in the New York Times on contingent workers carried the shocking headline: "all job created since 2005 were filled by contingent workers."  The source was a new paper by Lawrence Katz and Alan Kruger; two very respected economists. The paper also reports that the number of contingent workers in the economy has gone from 5% to 15% percent of the economy in 10 years.

The census bureau and the bureau of labor statistics have been effective blocked from conducting a survey on Contingent Workers because of funding issues. . The government has not done a survey since 2005.

NY Times -- Upshot:Contractors and Temps behind last 10 years of job growth

Thomas Perez, the current secretary of Labor recently announced that a new CWS would be taken in 2016. Expect the results in 2017.

In the mean time several others have stepped in to fill the gap.

Lawrence Katz and Alan Kruger employed the Rand Corporation to conducted a contingent workers survey on  as part of American Life Panel Data survey. The results formed the basis of their paper.

The survey was conducted in October/November of 2015.  Rand APL CWS survey link.

The "Contingent Worker" economy is also known as the Freelance, 1099, Gig, Uber or Employees without Benefits Economy. The "Sharing" economy was quickly dropped since the workers are forced to shared their pay checks with management.

A couple of background articles on the "Employees without Benefits" economy.

New Republic -- Voters are Angry at 1099 Economy

The rise and nature of alternative work arrangements in the US, 1995-2015

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The "Real" Adam Smith TV Show

Public Broadcasting Service is showing an excellent documentary on Adam Smith who first recognized and defined the market economy that we call "Capitalism."

The documentary is called: "The Real Adam Smith"

Warning: The documentary was developed by "Free to Choose Media", a conservative media outlet. The story and host ave a classical liberal bias toward free markets and limited government.

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Practice what you Preach: New York Times sued for Age, Race and Gender Discrimination

Opinion - Practice what you Preach

As long time New York Times readers, we are profoundly disappointed by the allegations against the New York Times. The times is owed a fair treatment by the legal system. We will follow the case closely. We found the Times fact based point of view unique in our entertainment driven world.
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However, We feel like we have been stabbed in the back by an old friend. We cannot read another story about immigration, the brutal Amazon workplace or the decline of government jobs for the Black middle class, without seeing the organization as a bunch of hypocrites. We cannot take seriously any editorial on any progressive issue related to race, sex or age without thinking it was completely insincere and written to pander to their desired demographic.

The Times has lost a large amount of moral authority on issues of age, race and gender by allowing this blatant discrimination to occur in the workplace. A newspaper is q unique place where public morality must correspond to private activities. There is no dividing line between editorial opinion and operational practice. Media outlets must "Practice what they Preach"

Growing up we were all taught: "Never to anything stupid enough to end up on the front page of the New York Times!" I guess that means the UK Guardian now.

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New York Times Sued for Age, Race and Gender discrimination

In a court filling, Ernestine Grant and Marjorie Walker, two Black, female employees in their 60 who worked in the advertising department, change the New York Times with age, race and gender discrimination.

In the complaint, the women state their supervisor express a clear preference for young, white men. They were assigned less lucrative accounts that young, white, men with less experience. They were also denied "perks" given to other employees.

The complaint is on the Wigdor Law LLP website.

You must also ask how diverse the law firm that is representing the women.

Wigdor Law LLP

http://www.wigdorlaw.com/

All net new jobs created since 2005 were contractor or temp help jobs.

We are in the Freelance or 1099 or Gig or Uber or "Employees without Benefits" Economy. We are still looking for the phase to describe this new and dreadful economy.

A couple of background articles on the "Employees without Benefits" economy.

New Republic -- Voters are Angry at 1099 Economy

NY Times -- Upshot:Contractors and Temps behind last 10 years of job growth

The rise and nature of alternative work arrangements in the US, 1995-2015

The paper states that all net new jobs created between 2005 and 2015 were independent contractor or temporary help jobs.

Some of the labor costs avoided by using 1099 / Contractors / Temporary Help

Payroll Taxes
Workman Compensation
Unemployment
Minimum Wage
Overtime
Healthcare
Dental
Vision
Life Insurance

Governments struggle to root out Fake Minority Contractors

Governing Magazine and Web-Site has a story on state and local governments inability to find fraudulent contractors.  Some minority business "pass-thru" work on non-minority contractors.

Fake Minority Contractors by Mattie Quinn in Governing Magazine

Good news: The unemployment rate rose in March as workers returned to Job Market. 215K new payroll jobs created.

The Bureau of Labor Statistics reported 215,000 new payroll jobs were created in March 2016 and the unemployment rate rose slightly to 5.0%.  The unemployment rate rose slightly as the labor force expanded by 396,000 job seekers. The labor force participation also cross 63% for the first time since March 2014. The LFP dropped during the recession as many people stopped working or retired.

The BLS released it's March Unemployment report on April 1, 2016.  

Chart of National Unemployment rate and Labor Force Participation Rate

The economy added 215,000 workers in March 2016.  New positions were added in construction, retail trade, transportation, healthcare and leisure/hospitality. Construction and healthcare are important because they pay above average wages.  Manufacturing took another huge hit: down -29,000 job.  Looks like it's game over for US manufacturing.

Chart of Non-Farm Payroll Changes

The Economist:The US needs more competition

The economist has a short story about excessive corporate profits due to monopoly power. The story also talks about lack of competition leading to lower investment and lower overall employment and wages.



Economist: The problem with Profits

February Employment Review

The US Economy added 242,000 non farm payroll jobs in February continuing strong job performance in a period usually affected by seasonal layoff and weather.

The national unemployment rate stayed at 4.9%. The labor force participation rate increased to 62.9% as the labor force increased by more than half a million people (555,000). Of the 555,000 people who joined the labor market, 530K reported working. 

The Black unemployment rate was 8.8% while the Black participation rate moved sides ways. Younger employees enter the labor market while old works exited.

The black unemployment rate has also fallen below it's longer term average.

 
The Black U-6 which we have been calling the "Real Black Unemployment Rate" was calculated at 13.6%.

Manufacturing jobs shrank again in February losing 16,000 positions. In a positive sign temporary help positions also declined.