The temporary workforce is on the rise. From 2005 until 2013, the contingent workforce rose 7% as more people took part-time and temporary jobs in place of full-time work. And this is due to Generation Y, or the Millennials. Millennials are the newest generation to enter the workplace and are the least likely to find or want full-time work. Below are three factors behind this growing trend.
THE ECONOMY
By the year 2014, Generation Y will account for nearly 36% of the United States’ workforce; and by 2025, 75% of the global workforce will be staffed by those born between the 1980s and 2000s. However, Generation Y has inherited an economy damaged by the The Great Recession. Fresh out of college, many graduates unsuccessfully search for employment. According to a Harvard Study, 6 in 10 millennials have jobs, and half of those jobs are part-time.
Therefore, a larger number of millennials are searching for extra work than any previous generation. These secondary part-time jobs, or in some cases freelance work, are driving up the numbers of positions in the temporary workforce.
GOVERNMENT OVERSIGHT & SOCIAL SECURITY
Because of the economic conditions millennials inherited, many have doubts about the government’s role in managing employment. Fifty-percent of their workforce believes that Social Security won’t even exist by the time they reach retirement.
Whatever your political opinion is on the matter, you cannot deny the effects this outlook has on the market. The newest members of the workforce have no motivation to take up full-time work with an organization because they believe the benefits offered to them will remain out of reach. In response, they have sought to diversify their career with multiple temporary positions.
The Affordable Care Act (ACA, or Obamacare) is also driving numbers of the contingent workforce upward. Employers are downsizing positions to part-time in order to evade medical insurance premiums set for full-time employees, and likewise, full-time employment is no longer the main way to become insured.
TECHNOLOGY, FLEXIBILITY & AN EVOLVING WORKPLACE
A study by Cisco concluded that 1 in 3 professionals under the age of 30 value “work mobility” over salary options. Contrary to expectations, not only do millennials lack access to full-time employment, but they are actively avoiding it in favor of less traditional career choices that the economy has compelled them to pursue.
Contingent labor is reacting to technology as well. Modern philosophies on blending work and personal life, such as the home office, are made possible from new technology created by Skype, Cisco, Google and Apple. These tech-giants have left their mark on culture, and many young people no longer view “the office” as a particular space, but as a fluid entity that they have access to via their computer, their phone and the web.
According to Cisco, 40% of college students and 45% of young employees would actually sacrifice salary for job flexibility, social media access and work mobility. And these trends show no sign of slowing. By 2018, the Bureau of Labor Statistics projects contingent labor to be valued as a $150 billion dollar industry.
Interested in learning more? ECS provides solutions to clients and recruiters seeking cost-effective management and deployment of their contract labor workforce. With over twenty years experience in the contingent staffing industry, ECS helps companies optimize and simplify the process of providing and utilizing contract workforce personnel in an efficient, compliant environment. Contact us today to learn how we can better assist you and your company’s needs.