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Contractual Job Openings on the Rise, Benefits Getting Lowered

There’s both good news and bad news.

While employers are indeed starting to hire (jobs are coming in at trickles), the bad news is that most positions are contractual and temporary.

While it is recession and having any kind of job would be great, the downside of being a contractual employee is that you would not have traditional benefits accorded to a full-time employee.

Because of the economic crunch, people are willing to settle for less than they deserve. And by accepting a contractual position, a lot of employees are no longer entitled to receive employment benefits such as health insurance, paid vacation and sick leaves, and even retirement plans.

On a short term basis, this wouldn’t be such a bad idea but according to experts, this trend of contingent employees would also balloon further. In 2005, it was estimated that 31 percent of all U.S. workers are “contingent workers” but it could increase to more than 40 percent within the next few years.

In fact, because of severe competition, the independent contractor model or freelancers are some of the most prominent modes of employment. This trend is ongoing largely due to the employer’s desire to cut costs and reluctance to take on permanent employment right away.

In fact, according to James Stoeckmann, senior practice leader at World at Work, within 20 to 30 years, full-time employees will be a minority in the work force.

Posted in Economy, News, Work Trends.

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One Response

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  1. Bret Yuson says

    In a sense, contractual jobs may also become beneficial for employees since they can have a flexible and more convenient working schedule. But as the author says, getting contractual jobs have several drawbacks, too. In order to accommodate to these disadvantages, contractual employees just need to understand their contracts very well and be prepared for any unexpected actions of their employers.

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