This paper is an article review of the “Contract Workforce Outpaces Growth in Silicon-Valley Style ‘Gig’ Jobs” published on March 25, 2016, in the Wall Street Journal and authored by Ann Louie Sussman and Josh Zumbrun.
The contract worker trend has extended beyond the Silicon Valley businesses. This labor shift has invaded the American economy and is evident in sectors such as transport and healthcare. Uber has popularized contract workers using drivers on demand. Drivers are summoned using an app and are paid according to the rides they take. Industries that previously offered permanent jobs are now increasing the number of contracts and temporary staff. Due to constrained budgets, many firms and government organizations have let go off employees, making the number of available workers for short-term employments to rise.
The number of ‘gig’ workers had increased from 10% in 2005 to 16% in early 2016, with alternative employment set ups accounting for about 600,000 individuals (Sussman & Zumbran par 5). This labor trend originated from the male-dominated sectors such as transportation and construction. Today, however, more females hold contract jobs compared to men. This shift in labor demographics can be attributed to the expansion of alternative forms of employment into female dominated industries such as healthcare.
Companies and government agencies are increasingly using ‘gig’ workers because such arrangements reduce hiring expenditure. However, some contract workers would like to get permanent positions so as to gain financial benefits associated with stable jobs. Critics believe that in using these forms of employment, employers intend to distance themselves from the workers.
Personal Opinion
Given the budgetary benefits and the efficiency of using contract workers, I believe this trend will continue to grow. Hiring independent contractters is flexible for both small and large businesses. It is easy to lay them off during recession and add them quickly when the need arises.
Works Cited
Sussman, Anna & Josh Zumbrun. “Contract Workforce Outpaces Growth in Silicon- Valley Style ‘Gig’ Jobs” The Wall Street Journal. 2016. Web. 25 Mar. 2016. <http://www.wsj.com/articles/contract-workforce-outpaces-growth-in-silicon-valley-style-gig-jobs-1458948608>
