22 Monthly Labor Review November 1998

Contingent Work

Steven Hipple is an

economist in the

Division of Labor

Force Statistics,

Bureau of Labor

Statistics.

B

oth the number and proportion of workers

with contingent jobs—that is, jobs that are

structured to be short term or temporary—

fell between 1995 and 1997. In the early 1990s,

the Bureau of Labor Statistics developed a survey

to estimate the number of contingent workers, conducting its first survey on the topic in February

1995. When the results of that first survey were

published, three alternative measures of contingent

work were introduced.1 Under the broadest of the

three definitions, there were 5.6 million contingent workers in 1997, and the contingency rate,

which represents the proportion of the employed

population holding contingent jobs, was 4.4 percent.2

By comparison, in 1995, 6.0 million workers held

contingent jobs, or 4.9 percent of total employment.

The decline in the number and proportion of workers with temporary jobs coincided with a period of

low unemployment and strong job growth.3

This article examines data on contingent work

arrangements from the second special supplement

to the Current Population Survey (CPS) on the

topic, conducted in February 1997.4 In the supplements, contingent workers are defined as individuals who do not perceive themselves as having an

explicit or implicit contract for ongoing employment. The analysis presented here focuses on the

most broadly defined group of contingent workers (estimate 3), using noncontingent workers—

those who are not classified as contingent even

under the broadest definition—as a point of comparison.5

Past analyses have shown that the characteristics of contingent and noncontingent workers differ markedly. Contingent work arrangements are

more common among certain demographic groups,

for example, and in certain occupations and inContingent work: results

from the second survey

Although the incidence of contingent work declined between

1995 and 1997, it continues to be more common among women,

youth, students, part-time workers, and in the construction

and services industries; still, contingent workers are found

in both high- and low-skilled occupations

Steven Hipple dustries. The two groups differ by other characteristics as well, including employee tenure and work

schedules. Disentangling the impact of these differences on such things as earnings or health insurance coverage can be very complex. The purpose

of this article is to provide an overview of the characteristics of contingent workers in 1997.

Demographics

The number of contingent workers and the contingency rate declined over the period between the two

surveys for most of the major demographic groups.

(See tables 1 and 2.) Among the age groups, young

workers continued to be the most likely to work in

contingent jobs—in 1997, the contingency rate for

teens (16 to 19 years) was 11.5 percent, and the rate

for 20- to 24-year-olds was 8.4 percent. In addition, both surveys showed that young contingent

workers were more likely to be students than were

their noncontingent counterparts. As the tabulation below shows, among 16- to 24-year-olds, 64

percent of contingent workers were enrolled in

school in 1997, compared with 40 percent of

noncontingent workers.

 Contingent Noncon-

 workers tingent

 (estimate 3) workers

Total, 16 to 24 years

(In thousands) .................... 1,690 16,299

Percent ................................ 100.0 100.0

 Enrolled .......................... 63.7 40.0

 High school ................. 19.5 16.0

 College ........................ 44.3 24.0

 Full time ................. 38.6 17.2

 Part time ................. 5.6 6.8

 Not enrolled ................... 36.3 60.0

The large proportion of younger contingent
 Monthly Labor Review November 1998 23

Table 1. Employed contingent and noncontingent workers by age, sex, race, Hispanic origin, and educational attainment,

February 1995 and February 1997

[Percent distribution]

 Contingent workers1

 Noncontingent

 workers2

1995 1997 1995 1997 1995 1997 1995 1997

 Age and sex

 Total, 16 years and older (thousands) ......... 2,739 2,385 3,422 3,096 6,034 5,574 117,174 121,168

Percent ........................................................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

16 to 19 years ................................................. 16.6 19.2 15.2 16.0 10.7 12.4 4.3 4.4

20 to 24 years ................................................. 25.0 23.9 22.2 21.0 19.8 17.9 9.6 9.0

25 to 34 years ................................................. 26.0 23.7 27.5 24.4 26.3 24.8 26.1 25.0

35 to 44 years ................................................. 18.5 17.5 19.8 20.6 21.0 20.9 28.0 28.2

45 to 54 years ................................................. 8.2 8.3 9.5 10.8 12.6 13.6 19.8 21.0

55 to 64 years ................................................. 3.8 5.3 3.7 5.4 5.9 7.3 9.4 9.6

65 years and older .......................................... 1.8 2.1 2.1 1.9 3.7 3.1 2.8 2.9

 Men .............................................................. 49.3 49.5 49.4 48.4 49.6 49.3 54.0 53.8

16 to 19 years ................................................. 7.2 9.5 6.8 7.7 4.8 6.2 2.2 2.2

20 to 24 years ................................................. 12.0 11.6 10.7 9.8 9.7 8.5 5.2 4.8

25 to 34 years ................................................. 12.9 11.4 13.6 11.6 13.8 12.3 14.3 13.6

35 to 44 years ................................................. 10.0 8.2 10.3 9.6 10.2 10.2 15.1 15.2

45 to 54 years ................................................. 3.3 4.1 4.2 5.0 5.7 6.2 10.5 11.1

55 to 64 years ................................................. 2.6 3.5 2.4 3.4 3.6 3.8 5.1 5.2

65 years and older .......................................... 1.2 1.3 1.3 1.2 1.9 2.0 1.7 1.6

Women ........................................................ 50.7 50.5 50.6 51.6 50.4 50.7 46.0 46.2

16 to 19 years ................................................. 9.5 9.8 8.4 8.2 5.9 6.2 2.1 2.2

20 to 24 years ................................................. 13.0 12.3 11.5 11.1 10.1 9.4 4.4 4.3

25 to 34 years ................................................. 13.1 12.2 13.9 12.8 12.5 12.5 11.8 11.4

35 to 44 years ................................................. 8.5 9.3 9.5 11.0 10.8 10.6 12.9 13.0

45 to 54 years ................................................. 4.9 4.3 5.3 5.7 6.9 7.4 9.3 9.6

55 to 64 years ................................................. 1.2 1.8 1.3 2.0 2.3 3.5 4.3 4.4

65 years and older .......................................... .6 .8 .8 .7 1.8 1.1 1.2 1.2

 Race and Hispanic origin

White ............................................................... 80.0 79.5 80.1 80.6 80.9 81.9 85.6 85.3

Black ............................................................... 13.9 13.3 13.6 13.0 13.3 11.1 10.5 10.6

Hispanic origin ................................................ 13.6 12.2 12.9 12.8 11.3 12.4 8.3 9.4

 Educational attainment

Total, 25 to 64 years (thousands) ................ 1,547 1,308 2,070 1,893 3,968 3,710 97,633 101,397

Percent ........................................................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Less than a high school diploma .................... 14.0 10.0 13.6 11.0 12.0 10.4 9.6 9.6

High school graduates, no college .................. 27.9 27.9 27.5 28.5 27.3 26.8 32.4 32.8

Some college, no degree ................................ 22.8 21.9 23.3 20.2 19.6 18.8 19.9 18.9

Associate degree ............................................ 8.4 10.7 8.0 10.1 7.9 8.2 9.1 9.1

College graduates ........................................... 27.0 29.4 27.7 30.1 33.2 35.8 28.9 29.5

Advanced degree ....................................... 9.4 10.5 10.0 9.3 14.9 14.7 9.9 10.0

workers enrolled in school suggests that the lack of a longterm commitment associated with temporary work is compatible with school attendance. For example, a job structured to

last only until the end of the school year might be mutually

satisfactory for both employer and employee. Interestingly,

much of the high rate of contingency among employed 20- to

24-year-old college students results from their employment

in jobs that almost by definition are contingent. Thirteen percent of this group work in education (that is, at their schools),

a higher percentage than any other industry except eating and

Estimate 1 Estimate 2 Estimate 3

1 Contingent workers are defined as individuals who do not perceive themselves as having an explicit or implicit contract with their employers for ongoing

employment. Estimate 1 above is calculated using the narrowest definition of

contingent work; estimate 3 uses the broadest definition. For the specific criteria

used for each definition, see the appendix, pp. 34–35.

2 Noncontingent workers are those who do not meet the criteria for any of

the three definitions of contingent work.

NOTE: Data for the above race and Hispanic-origin groups will not sum to

totals because data for the “other races” group are not presented and Hispanics

are included in both the white and black population groups. Detail for other

characteristics may not sum to totals due to rounding.

 Characteristic
24 Monthly Labor Review November 1998

Table 2. Contingency rates by age, sex, race, Hispanic origin, and educational attainment, February1995 and February

 1997

[Percent]

 Contingency rates1

Estimate 1 Estimate 2 Estimate 3

1995 1997 1995 1997 1995 1997

 Age and sex

 Total, 16 years and older .................. 2.2 1.9 2.8 2.4 4.9 4.4

16 to 19 years ...................................... 8.1 7.6 9.2 8.2 11.4 11.5

20 to 24 years ...................................... 5.5 4.8 6.1 5.4 9.6 8.4

25 to 34 years ...................................... 2.2 1.8 2.9 2.4 4.9 4.4

35 to 44 years ...................................... 1.5 1.2 2.0 1.8 3.7 3.3

45 to 54 years ...................................... .9 .8 1.4 1.3 3.2 2.9

55 to 64 years ...................................... .9 1.1 1.1 1.4 3.1 3.4

65 years and older ............................... 1.4 1.3 2.1 1.6 6.3 4.8

Men ...................................................... 2.0 1.7 2.5 2.2 4.5 4.0

Women ................................................ 2.4 2.0 3.0 2.7 5.3 4.8

 Race and Hispanic origin

White .................................................... 2.1 1.8 2.6 2.3 4.6 4.2

Black .................................................... 2.9 2.4 3.5 3.0 6.1 4.6

Hispanic origin ..................................... 3.6 2.4 4.2 3.3 6.5 5.7

 Educational attainment

 Total, 25 to 64 years ......................... 1.5 1.2 2.0 1.8 3.9 3.5

Less than a high school diploma ......... 2.2 1.3 2.9 2.1 4.8 3.8

High school graduates, no college ....... 1.3 1.1 1.7 1.6 3.3 2.9

Some college, no degree ..................... 1.7 1.4 2.4 1.9 3.8 3.5

Associate degree ................................. 1.4 1.5 1.8 2.0 3.4 3.2

College graduates ................................ 1.4 1.2 1.9 1.8 4.5 4.3

 Advanced degree ............................... 1.4 1.3 2.0 1.6 5.8 5.1

drinking places.

Women continued to be somewhat more likely than men to

hold contingent jobs, although the rates for both groups fell over

the 1995–97 period. Employment among women tends to be

concentrated in many of the occupations and industries in which

contingent work arrangements are most common. Women also

have a greater tendency to work part time, and part-time workers are more likely to be contingent than full-time workers.

Similar to women, blacks and Hispanics in 1997 continued to

have higher contingency rates than whites, although the rates for

each of the three groups declined between the two surveys. The

rates for whites (4.2 percent in 1997) and Hispanics (5.7 percent

in 1997) fell slightly over the period, while the rate for blacks fell

sharply, from 6.1 percent in 1995 to 4.6 percent in 1997.

Industry and occupation

Industry. As in the prior survey, the likelihood of holding a

contingent job was greatest for workers in the construction and

services industries. In 1997, contingency rates for construction

and services were 7.2 percent and 6.7 percent, respectively.

6

 (See

table 3.) Specific industries within services that had relatively

high rates of contingency included personnel supply services (44.4

percent), private household services (15.7 percent), educational

services (11.4 percent), entertainment and recreation services (6.8

percent), and social services (6.2 percent).

Major industry groups with below-average contingency

rates (less than 3.0 percent) included manufacturing; transportation and public utilities; wholesale and retail trade; and

finance, insurance, and real estate.

Occupation. As in 1995, contingent workers in the 1997

survey were found in both low- and high-skilled occupations.

For example, contingency rates were highest for those in professional specialty (6.0 percent), administrative support (6.0

percent), and farming occupations (5.9 percent). The fact that

the probability of holding a contingent job was relatively high

among occupations with such varying skill levels tends to refute the stereotype that contingent workers are primarily lowskilled.

Within the professional specialty category, the contingency

rate was especially high for postsecondary teachers—28.4 percent. The rate for elementary and secondary school teachers,

by contrast, although still above average, was just 6.2 per-

1 Contingency rates are calculated by dividing the number of contingent workers in a specified worker group by the total number of employed persons in the

same worker group. Estimate 1 above is calculated using the narrowest definition of contingent work; estimate 3 uses the broadest definition. For the specific

criteria used for each definition, see the appendix, pp. 34–35.

Contingent Work

Characteristic
 Monthly Labor Review November 1998 25

Table 3. Contingency rates by occupation and industry, February 1995 and February 1997

[Percent]

 Contingency rates1

Estimate 1 Estimate 2 Estimate 3

1995 1997 1995 1997 1995 1997

 Occupation

Total, 16 years and older .............................................. 2.2 1.9 2.8 2.4 4.9 4.4

Managerial and professional specialty ............................. 1.7 1.4 2.1 1.7 4.8 4.2

Executive, administrative, and managerial .................. . 8 .7 1.1 1.0 2.7 2.2

Professional specialty .................................................. 2.6 2.0 3.1 2.4 6.8 6.0

Technical, sales, and administrative support ................... 2.1 2.1 2.5 2.6 4.4 4.3

Technicians and related support .................................. 1.3 1.8 1.9 2.7 4.2 4.7

Sales occupations ........................................................ 1.2 1.1 1.6 1.5 2.6 2.1

Administrative support, including clerical ..................... 3.1 3.0 3.4 3.5 5.8 6.0

Service occupations ........................................................ 3.0 2.3 4.1 3.2 5.8 5.0

Precision, production, craft, and repair ............................ 2.3 1.8 2.9 2.3 4.6 4.1

Operators, fabricators, and laborers ................................ 2.7 2.2 3.1 3.0 5.4 4.4

Farming, forestry, and fishing ........................................... 2.2 2.0 3.2 3.0 5.6 5.9

 Industry

Total, 16 years and older .............................................. 2.2 1.9 2.8 2.4 4.9 4.4

Agriculture ........................................................................ 2.4 1.6 3.3 2.6 5.0 5.2

Mining .............................................................................. 1.0 1.1 1.0 1.8 2.6 4.0

Construction ..................................................................... 4.5 3.7 5.7 4.7 8.4 7.2

Manufacturing .................................................................. 1.3 .9 1.6 1.1 3.1 2.1

Transportation and public utilities ..................................... 1.2 .7 1.3 1.2 2.9 2.6

Wholesale trade ............................................................... .7 .8 1.0 1.3 2.3 2.1

Retail trade ....................................................................... 1.6 1.5 2.0 1.7 3.0 2.6

Finance, insurance, and real estate ................................. .7 1.1 .8 1.3 2.0 2.1

Services ........................................................................... 3.4 2.8 4.3 3.7 7.5 6.7

Public administration ........................................................ 1.2 1.2 1.2 1.2 3.6 4.2

.

cent. The high rate among college and university instructors

most likely reflects the increasingly common practice within

these institutions of employing untenured faculty, most of

whom work under short-term contracts.7 It also may help

explain the relatively high contingency rate (5.1 percent)

among workers with advanced degrees—more than three-fifths

of these workers were in professional specialty occupations, which

have above-average rates of contingency. Many workers with

advanced degrees are employed by colleges and universities.

Other professional specialty occupations with relatively

high contingency rates include biological and life scientists

(19.8 percent), musicians and composers (12.6 percent), physicians (9.9 percent), actors and directors (9.9 percent). Occupations within the administrative support category having high

contingency rates include library clerks (23.9 percent), file

clerks (16.1 percent), general office clerks (14.4 percent), data

entry keyers (14.4 percent), teachers’ aides (11.8 percent),

and interviewers (9.9 percent), and receptionists (8.6 percent.)

Contingent work and mothers

Some researchers have expressed concern about the negative

impact that contingent work has on families.8 Table 4 shows

contingency rates for women by marital status and presence

of children. Interestingly, both married and unmarried women

with children under the age of 18 had below-average contingency rates—3.9 percent each, compared with 4.4 percent for

all workers. This is related, in part, to the fact that most women

with children under 18 are beyond the very young age groups

in which contingent work is most common. When limited to

women with children under 6 years, the contingency rate was

4.6 percent, slightly higher than the rate for all workers.

Hours of work

Much like in the first survey, the 1997 data show that parttime workers—those usually working fewer than 35 hours per

week—were more likely than full-time workers to hold contingent jobs. About 10 percent of part-timers were classified

1 Contingency rates are calculated by dividing the number of contingent workers in a specified worker group by the total number of employed persons in the

same worker group. Estimate 1 above is calculated using the narrowest definition of contingent work; estimate 3 uses the broadest definition. For the specific

criteria used for each definition, see the appendix, pp. 34–35.

Occupation and industry
26 Monthly Labor Review November 1998

Table 4. Contingency rates for women by marital status

 and presence and age of children, February 1997

[Percent]

 Contingency rates1

 Estimate 1 Estimate 2 Estimate 3

 Total

Wives and women who maintain

 families ........................................... 1.3 2.0 3.7

With children under 18 years ...... 1.5 2.3 3.9

With children under 6 years ....... 1.9 3.3 4.6

With children 6 to 17 years ........ 1.3 1.6 3.5

With no children under 18 years . 1.0 1.6 3.4

 Married, spouse present

Wives .............................................. 1.2 1.9 3.7

With children under 18 years ...... 1.3 2.1 3.9

With children under 6 years ....... 1.6 3.1 4.5

With children 6 to 17 years ........ 1.1 1.4 3.5

With no children under 18 years . 0.9 1.6 3.5

 Other marital status

Women who maintain families ........ 1.8 2.5 3.6

With children under 18 years ...... 2.2 2.9 3.9

With children under 6 years ..... 3.0 4.2 4.9

With children 6 to 17 years ...... 1.9 2.1 3.4

With no children under 18 years . 1.0 1.7 3.1

as contingent workers in 1997, compared with just 3 percent

of those who usually work full time. Viewed another way,

among those holding contingent jobs in 1997, 43 percent usually worked fewer than 35 hours per week; among

noncontingent workers, by contrast, only 18 percent usually

worked part time. (See table 5).

As shown in the following tabulation, contingency rates

were higher for part-time workers in each of the major industry groups.

Total ..................................... 3.1 9.9

Agriculture .............................. 4.3 8.3

Mining ..................................... 2.5 –

Construction ............................ 6.9 9.8

Manufacturing ......................... 1.9 6.7

Transportation and

public utilities ..................... 2.1 7.3

Wholesale trade ...................... 1.4 8.8

Retail trade .............................. 1.5 4.5

Finance, insurance

 and real estate .................... 1.8 4.4

Services ................................... 4.3 14.4

Public administration ............. 3.2 18.1

Data not available where base employment is less than 75,000.

Moreover, the rates for part-time workers were higher than

the overall average of 4.4 percent in all but one industry—

finance, insurance, and real estate. Among full-time workers,

by contrast, the contingency rate was above average in just

one industry, construction, in which the rate was 6.9 percent.

This suggests that, while contingency may be closely related

to certain types of work (construction and college teaching,

for example), it also is an attribute of part-time jobs, regardless of the industry.

Among part-time workers, contingent and noncontingent

workers were about equally likely to prefer working part

time—that is, they worked part time voluntarily and not for

economic reasons; four-fifths of workers in each group preferred working part time. Of those who did work part time for

economic reasons, the vast majority (91 percent) held jobs

that were not structured to be temporary. Contingent workers

also tend to work slightly fewer hours per week than their

noncontingent counterparts. Among persons who usually

worked full time, average weekly hours were 40.2 for contingent workers, compared with 42.6 for noncontingent workers. For those who usually worked part time, contingent workers averaged 17.3 hours per week, compared with 20.7 hours

per week for noncontingent workers.

Multiple jobholding

Contingent workers were more likely than noncontingent

workers to hold more than one job. (For multiple jobholding

respondents in the survey, the questions about contingency

refer to their main jobs, that is, the job at which they worked

the most hours during the reference week.) The multiple

jobholding rate—the proportion of workers with more than one

job—was 8.9 percent for contingent workers, compared with 6.7

percent for noncontingent workers. (See table 5.) One possible

explanation for the higher multiple jobholding rate among contingent workers is that these workers are much more likely to

work part time, and part-time workers are more likely than

full-time workers to hold two or more jobs. Also, because

they both work fewer hours and earn less, regardless of their

work schedules, contingent workers probably are more likely

to require an additional job to supplement their income.

Preferences and reasons

Workers holding contingent jobs were asked if they preferred

such employment to noncontingent work, as well as the reason they were employed in a contingent job. Nearly threefifths of contingent workers said they would rather hold a

noncontingent job.9 (See table 6.) Young contingent workers

(aged 16 to 24) were much more likely than their older counterparts to be satisfied with their current arrangement—nearly

half of the younger workers were happy with their contingent

jobs, compared with about a third of those aged 25 and older.

As discussed earlier, the majority of younger contingent work-

 Characteristic

1 Contingency rates are calculated by dividing the number of contingent

workers in a specified worker group by the total number of employed persons

in the same worker group. Estimate 1 above is calculated using the narrowest definition of contingent work; estimate 3 uses the broadest definition. For

the specific criteria used for each definition, see the appendix, pp. 34–35.

Contingent Work

Full-time

 workers

Part-time

workers
 Monthly Labor Review November 1998 27

Table 5. Employed contingent and noncontingent workers by full- and part-time status, reason for part-time work, 

 usual hours at work on primary job, and multiple job holding, February 1997

Estimate 1 Estimate 2 Estimate 3

 Full- or part-time status3

 Total employed, 16 years and older (thousands) .................................. 2,385 3,096 5,574 121,168

Percent .............................................................................................. 100.0 100.0 100.0 100.0

Full-time workers ............................................................................. 53.5 54.8 57.5 82.2

Part-time workers ............................................................................ 46.6 45.2 42.5 17.8

At work part time for economic reasons ...................................... 9.9 10.0 7.6 3.3

At work part time for noneconomic reasons ................................ 36.9 34.8 33.9 14.1

 Hours of work

Average hours, total at work ...................................................................... 28.6 29.0 30.2 38.6

Average hours, usually work full time ........................................................ 39.4 39.3 40.2 42.6

Average hours, usually work part time ....................................................... 16.7 16.9 17.3 20.7

 Multiple jobholding

Total, 16 years and older (thousands) ........................................................ 202 243 497 8,077

Percent4

.................................................................................................. 100.0 100.0 100.0 100.0

Primary job full time, secondary job part time .................................... 49.5 51.0 49.3 55.9

Primary and secondary job both part time ......................................... 37.1 36.6 35.4 21.4

Hours vary on primary or secondary jobs .......................................... 11.9 10.7 13.7 19.8

Proportion of full-time workers who combined part-time jobs ................ 2.2 2.2 2.4 1.0

Multiple jobholding rate5

......................................................................... 8.4 7.8 8.9 6.7

Noncontingent

workers2

Characteristic

Contingent workers1

ers (64 percent) are enrolled in school, and students often

prefer alternative work arrangements to accommodate their

schedules.

Nearly half of contingent workers gave personal reasons

for accepting their contingent jobs, although among those who

said they would rather have a noncontingent job, only 30 percent cited personal reasons. (See table 7.) Also, 46 percent

of those who preferred noncontingent employment gave an

economic reason for being in their current arrangement, compared with 6 percent of those who preferred contingent

work.10

Contingent workers in 1997 were more likely to give a

personal reason for holding a contingent job than were their

counterparts in 1995. The proportion reporting a personal

reason for holding a contingent job was 49 percent in 1997,

compared with 44 percent in 1995. The increase between the

two surveys suggests that contingent work was more of a voluntary choice in the most recent survey, coinciding with a

stronger overall labor market.

About a fifth of contingent workers reported attending

school or training as the reason for being in their current arrangement. Other reasons suggest contingent work enabled

some to participate in the labor market despite their involvement in activities that otherwise may have precluded them

from employment. Specifically, 15 percent of contingent workers gave either flexibility of schedule or family obligations as

a reason for being in a contingent arrangement. The primary

economic reason given was that it was the only type of work

they could find; 18 percent of contingent workers gave such a

reason.

Compensation

Earnings. As in the prior survey, contingent workers in 1997

earned less per week than noncontingent workers. Median earnings were $266 per week for contingent workers, compared with

$444 per week for their noncontingent counterparts. The disparity reflects the many differences between the two groups

in terms of work schedules, demographics, occupational and

industry concentration, and employer tenure. As mentioned

previously, for example, contingent workers are more likely

to hold part-time jobs than are noncontingent workers.

1 Contingent workers are defined as individuals who do not perceive themselves as having an explicit or implicit contract with their employers for ongoing

employment. Estimate 1 above is calculated using the narrowest definition of

contingent work; estimate 3 uses the broadest definition. For the specific criteria used for each definition, see the appendix, pp. 34–35.

2

 Noncontingent workers are those who do not meet the criteria for any of

the three definitions of contingent work.

3

 Part-time is defined as 1 to 34 hours per week; full time is 35 hours or

more. The classification of full- and part-time workers is based on the number

of hours usually worked. The sum of the at-work part time categories would not

equal the estimate for part-time workers as the latter includes those who had a

job but were not at work in the reference week. Persons who are at work part

time for an economic or noneconomic reason are limited to those who usually

work part time.

4

 A small number of individuals who worked full time on both their primary

and secondary jobs or worked part time on their primary jobs and full time on

their secondary jobs are not shown separately.

5 Multiple jobholding rates are calculated by dividing the number of multiple

jobholders in a specified worker group by total employment for the same worker

group.

NOTE: Some of the detail above may not sum to totals due to rounding.
28 Monthly Labor Review November 1998

Table 7. Employed contingent workers by reason for

 contingency and preference for noncontingent

 work, February 1997

[Percent distribution]

Contingent workers1

 Estimate 1 Estimate 2 Estimate 3

 Total

Total, 16 years and older

(thousands) .................................. 2,385 2,663 5,140

Percent ............................................. 100.0 100.0 100.0

Economic reasons ........................... 38.2 39.6 30.5

Only type of work could find ......... 23.2 24.8 18.2

Hope job leads to permanent

employment .............................. 8.1 8.0 6.7

Other economic reason ................ 7.0 6.8 5.6

Personal reasons ............................. 48.7 47.3 48.5

Flexibility of schedule and only

wanted to work a short period

of time ....................................... 11.2 12.6 11.7

Family or personal obligations

and child-care problems ........... 2.9 2.8 3.2

 In school or training ..................... 21.6 19.7 19.2

 Money is better ............................ 1.7 1.5 1.4

 Other personal reason ................ 11.2 10.7 13.0

Reason not available ....................... 13.1 13.1 20.9

Prefer noncontingent employment

 Total, 16 years and older

(thousands) .................................... 1,436 1,755 3,096

Percent ......................................... 100.0 100.0 100.0

Economic reasons ........................... 57.9 55.2 45.8

Only type of work could find ......... 36.1 35.6 28.3

Hope job leads to permanent

employment ................................ 12.3 11.1 10.1

Other economic reason ................ 9.5 8.5 7.5

Personal reasons ............................. 28.3 26.6 29.6

Flexibility of schedule and only

wanted to work a short period

of time ......................................... 6.3 6.5 6.1

Family or personal obligations

and child-care problems ........... 2.5 2.5 2.2

In school or training ...................... 10.0 8.8 10.6

Money is better ............................. 1.8 1.5 1.3

Other personal reason ................. 7.9 7.3 9.3

Reason not available ....................... 13.6 18.2 24.6

Table 6. Preferences of employed contingent workers for

 contingent and noncontingent arrangements

 by sex and age, February 1997

[Percent distribution]

 Contingent workers1

Estimate 1 Estimate 2 Estimate 3

 Total

Employed (thousands) ................ 2,385 3,096 5,574

Percent ........................................ 100.0 100.0 100.0

Prefer noncontingent arrangement . 60.2 56.7 55.5

Prefer contingent arrangement ....... 34.1 35.8 36.1

It depends ....................................... 4.9 5.2 5.8

Preference not available ................. .9 2.3 2.5

 Men, 25 years and older

Employed (thousands) ................ 679 954 1,926

Percent ........................................ 100.0 100.0 100.0

Prefer noncontingent arrangement . 69.8 63.8 60.9

Prefer contingent arrangement ....... 24.2 28.5 29.3

It depends ....................................... 4.9 5.1 6.7

Preference not available ................. 1.2 2.6 3.1

 Women, 25 years and older

Employed (thousands) ................ 677 999 1,958

Percent ........................................ 100.0 100.0 100.0

Prefer noncontingent arrangement . 70.2 59.7 58.5

Prefer contingent arrangement ....... 25.4 31.9 33.4

It depends ....................................... 4.0 5.2 5.2

Preference not available ................. .4 3.2 2.9

 Both sexes, 16 to 24 years

Employed (thousands) ................ 1,029 1,143 1,690

Percent ........................................ 100.0 100.0 100.0

Prefer noncontingent arrangement . 47.3 48.1 46.0

Prefer contingent arrangement ....... 46.4 45.4 47.1

It depends ....................................... 5.4 5.3 5.4

Preference not available ................. 1.0 1.2 1.5

Characteristic

1

 Contingent workers are defined as individuals who do not perceive themselves as having an explicit or implicit contract with their employers for ongoing employment. Estimate 1 above is calculated using the narrowest definition

of contingent work; estimate 3 uses the broadest definition. For the specific

criteria used for each definition, see the appendix, pp. 34–35.

NOTE: Some of the detail above may not sum to totals due to rounding.

Still, even among those who worked full time, median weekly

earnings were just $417, or roughly 80 percent of the median

for full-time noncontingent workers. Similarly, earnings for

part-time contingent workers were $111 per week, or 76 percent of what those who held permanent jobs earned. The ratios were roughly similar for all of the major worker groups—

men, women, whites, blacks, and Hispanics. (See table 8.)

As mentioned earlier, contingent workers are employed in

both high- and low-skilled occupations. As a result, their earnings varied considerably by occupation. Among occupations

that had above-average contingency rates, full-time contingent workers holding professional specialty jobs had the highest weekly earnings ($677), followed by administrative support, including clerical ($342); service occupations ($258);

and farming, forestry, and fishing ($233). (See table 9.)

Health insurance. As in the first survey, contingent workers in 1997 were much less likely than noncontingent workers

to have employer-provided health insurance coverage—

slightly more than a third of those holding contingent jobs

were offered health insurance coverage by their employer, in

contrast to nearly three-fourths of those in noncontingent

jobs.11 (See table 10.) As with other measures discussed earlier, the low coverage rates can be partially explained by the

make-up of the contingent workforce—its age, work schedules, industry and occupational concentrations.

1 Contingent workers are defined as individuals who do not perceive themselves as having an explicit or implicit contract with their employers for ongoing employment. Estimate 1 above is calculated using the narrowest definition of contingent work; estimate 3 uses the broadest definition. For the specific criteria used for each definition, see the appendix, pp. 34–35.

Reason

Contingent Work
 Monthly Labor Review November 1998 29

 Table 9. Median weekly earnings of full- and part-time time

 contingent and noncontingent wage and salary

 workers by occupation and industry, February 1997

 Median weekly earnings

 Occupation

Managerial and professional

specialty ........................................ $627 $755 $165 $256

Executive, administrative,

and managerial ......................... 557 733 126 234

Professional specialty ................. 677 783 169 266

Technical, sales,

and administrative support ............ 357 459 107 145

Technicians and related

support ...................................... 529 578 154 300

Sales occupations ....................... 325 486 97 125

Administrative support,

 including clerical ....................... 342 419 107 160

Service occupations ....................... 258 312 73 126

Private household ....................... 241 212 57 91

Other services ............................. 263 314 78 129

Precision, production, craft,

and repair ...................................... 630 534 203 221

Operators, fabricators,

 and laborers ................................. 323 410 115 134

Farming, forestry, and fishing .......... 233 310 87 115

 Industry

Agriculture ....................................... 234 322 78 117

Mining ............................................. (

5

) 666 (

5

) 430

Construction .................................... 668 508 212 259

Manufacturing ................................. 391 529 174 156

Durable goods ............................. 408 575 152 168

Nondurable goods ....................... 314 490 199 146

Transportation and public utilities .... 614 635 140 196

Wholesale trade .............................. (

5

) 513 (

5

) 140

Retail trade ...................................... 273 351 90 124

Finance, insurance,

and real estate .............................. 515 545 119 165

Services .......................................... 397 513 112 161

Private household ....................... 267 224 67 87

Other services ............................. 401 516 114 164

Professional services .............. 473 554 111 176

Public administration ....................... 462 619 114 181

Table 8. Median weekly earnings of full- and part-time time

 contingent and noncontingent wage and salary

 workers by selected characteristics, February 1997

 Age and sex

Total, 16 years and older .............. $417 $510 $111 $146

16 to 19 years ............................. 246 238 67 97

 20 to 24 years ............................. 300 329 90 131

 25 years and older ...................... 475 549 170 175

 25 to 34 years .......................... 421 486 186 184

 35 to 44 years .......................... 518 578 166 188

 45 to 54 years .......................... 490 612 191 199

 55 to 64 years .......................... 502 572 151 171

 65 years and older ................... (

5

) 447 121 123

Men, 16 years and older .............. 486 578 111 129

Women, 16 years and older ......... 353 449 110 153

 Race and Hispanic origin

White ............................................ 426 523 110 145

Black ............................................ 377 426 107 150

Hispanic origin ............................. 278 359 101 141

 Educational attainment

Less than a high school

diploma ..................................... 235 304 74 101

High school graduates,

no college ................................. 382 427 134 154

Some college, no degree ............. 399 494 93 142

Associate degree ......................... 498 519 148 222

College graduates ........................ 592 772 203 249

Although workers with contingent jobs were less likely than

those with noncontingent jobs to obtain health insurance from

their employers, a relatively large share (about two-thirds)

had coverage from some source. Contingent workers received

coverage from a variety of sources, but access through another family member was the most prevalent source.

Relatively high proportions of both teenage contingent

workers and those aged 65 years and older had health insurance from some source—nearly the same coverage rates as

their noncontingent counterparts. Teenagers often are covered under their parents’ plans, and persons in the older age

group have almost universal coverage under medicare. Among

Full-time workers1 Part-time workers2

 Median weekly earnings

Characteristic

Noncontingent4

Noncontingent

Contingent

(Estimate 3)

Contingent

(Estimate 3}

Contingent

(Estimate 3)3

Contingent

(Estimate 3)3

Noncontingent

Noncontingent4

ences in coverage rates were substantial—less than two-thirds

of those with contingent arrangements had health insurance

whose jobs were noncontingent.

Women with contingent jobs were less likely than their

1

 Full-time workers are those who usually work 35 hours per week or

more.

2

 Part-time workers are those who usually work 1 to 34 hours per week.

3

 Contingent workers are defined as individuals who do not perceive themselves as having an explicit or implicit contract with their employers for ongoing employment. Estimate 3 above is calculated using the broadest definition.

For the specific criteria used for each definition, see the appendix, pp. 34–35.

4

 Noncontingent workers are those who do not meet the criteria for any of

the three definitions of contingent work.

5

 Data not shown where base employment is less than 75,000.

1

 Full-time workers are those who usually work 35 hours per week or more.

2

 Part-time workers are those who usually work 1 to 34 hours per week.

3

 Contingent workers are defined as individuals who do not perceive themselves as having an explicit or implicit contract with their employers for ongoing employment. Estimate 3 above is calculated using the broardest definition.

For the specific criteria used for each definition, see the appendix, pp.34–35.

4

 Noncontingent workers are those who do not meet the criteria for any of

the three definitions of contingent work.

5

 Data not shown where base employment is less than 75,000.

 Occupation and industry

Full-time workers1 Part-time workers2
30 Monthly Labor Review November 1998

Table 10. Employed contingent and noncontingent wage and salary workers with health insurance coverage by

 selected characteristics, February 1997

Contingent workers (estimate 3)1 Noncontingent workers2

Through Eligible for Through Eligible for

current Through employer- current Through employerTotal employer other job provided Total employer other job provided

at main or union health at main or union health

 job insurance job insurance

 Age and sex

 Total, 16 years and older ...... 5,140 67.1 22.4 3.5 35.3 106,697 83.0 61.2 0.7 73.8

16 to 19 years ............................ 664 70.6 5.6 (

3

) 12.3 5,272 71.7 9.4 (

3

) 22.6

20 to 24 years ............................ 945 65.1 11.5 1.0 26.6 10,653 65.2 41.8 .3 57.7

25 years and older ..................... 3,531 66.9 28.5 4.9 42.0 90,773 85.7 66.5 .8 78.7

25 to 34 years ......................... 1,251 59.6 30.0 3.4 43.2 27,845 80.7 63.7 .6 77.4

35 to 44 years ......................... 1,041 63.2 28.6 4.8 40.8 29,790 86.4 67.9 .7 80.0

45 to 54 years ......................... 683 72.5 29.3 7.3 45.8 21,539 88.8 70.9 .8 81.8

55 to 64 years ......................... 393 81.2 28.5 6.4 39.2 9,349 89.8 67.9 1.9 78.3

65 years and older.................. 163 90.2 13.5 4.3 31.3 2,249 91.7 35.4 2.5 48.9

Men ............................................ 2,547 62.6 24.8 6.1 37.1 55,754 82.2 66.7 1.1 76.5

Women ....................................... 2,593 71.5 20.1 1.0 33.6 50,944 83.8 55.3 .3 70.9

 Race and Hispanic origin

White .......................................... 4,177 69.4 22.4 4.1 35.0 90,098 84.0 61.1 .7 73.9

Black .......................................... 585 49.7 13.7 .3 25.6 12,218 77.0 62.6 .6 73.7

Hispanic origin ........................... 610 39.0 13.9 3.0 27.5 10,534 62.1 48.9 .6 60.8

 Full- and part-time status

Full-time workers ........................ 2,890 62.0 31.7 5.5 45.3 87,378 84.8 70.8 .7 82.9

Part-time workers ....................... 2,230 73.4 10.4 1.1 22.4 19,067 74.7 17.5 .8 32.4

 Educational attainment4

Less than a high school

diploma ................................... 495 36.6 14.7 2.2 22.2 10,882 61.6 45.4 .8 57.1

High school graduates,

 no college .............................. 1,116 55.5 18.9 7.0 30.2 34,508 79.8 58.9 1.0 72.7

Some college, no degree ........... 783 64.2 20.2 5.4 35.6 18,901 84.9 65.7 .7 78.5

Associate degree ....................... 308 59.4 21.8 7.1 37.0 8,989 89.0 67.8 .8 83.0

College graduates ...................... 1,381 79.6 41.6 2.0 56.2 26,998 93.5 77.1 .5 87.3

1

 Contingent workers are defined as individuals who do not perceive themselves as having an explicit or implicit contract with their employers for ongoing

employment. Estimate 3 above is calculated using the broadest definition. For

the specific criteria used for each definition, see the appendix, pp. 34–35.

2

 Noncontingent workers are those who do not meet the criteria for any of

the three definitions of contingent work.

3

 Less than 0.05 percent.

4

 Excludes workers aged 16 to 24 enrolled in school.

NOTE: Detail for the above race and Hispanic-origin groups will not sum to

totals because data for the “other races” group are not presented and Hispanics are included in both the white and black population groups. Detail for other

characteristics may not sum to totals due to rounding.

ployer or an employment-related source, but they were more

likely than men to have coverage from all sources. (Many

women are covered under their spouses’ plans.) Among the

race and ethnic groups, white contingent workers had much

higher coverage rates than either blacks or Hispanics, regardless of the source considered. Nearly 70 percent of whites

were insured, compared with 50 percent of blacks and 39 percent of Hispanics. White workers also were considerably more

likely than blacks or Hispanics to have employer-provided

insurance.

In terms of occupation and industry, contingent workers in

every major group were less likely than their noncontingent

counterparts to have health insurance from any source; they

also were less likely to be eligible for, and to receive, employer-provided insurance. However, the likelihood of receiving employer-provided coverage or of being eligible for coverage also varies by occupation and industry. For example,

managers and professionals in both contingent and

Contingent Work

Percent

Percent

Total (in

thousands)

Total (in

thousands

Characteristic

Percent with health

insurance coverage

Percent with health

insurance coverage
 Monthly Labor Review November 1998 31

1

 Contingent workers are defined as individuals who do not perceive themselves as having an explicit or implicit contract with their employers for ongoing

employment. Estimate 3 above is calculated using the broardest definition. For

the specific criteria used for each definition, see the appendix, pp. 34–35.

2

 Noncontingent workers are those who do not meet the criteria for any of

the three definitions of contingent work.

3

 Less than 0.05 percent.

4

 Data not shown where base employment is less than 75,000.

noncontingent work arrangements had higher employer-provided coverage and eligibility rates than their counterparts in

other occupations. In fact, coverage and eligibility rates for

managers and professionals in contingent jobs actually exceeded those of some workers holding noncontingent jobs in

other occupations—namely, workers in service and farming

occupations. (See table 11.)

By industry, public administration workers in contingent

or noncontingent arrangements had higher employer-provided

coverage and eligibility rates than their counterparts in other

industries. And, as with occupations, coverage and eligibility rates for contingent workers in some industries were higher

than those of some noncontingent workers. Specifically, contingent workers in public administration and in durable-goods

manufacturing had higher rates than did noncontingent workers in agriculture.

Pensions. As in the prior survey, the 1997 data show that

contingent workers were much less likely than those with

noncontingent arrangements to participate in employer-sponsored pension plans.12 (See table 12.) Only 16 percent of contingent workers participated in such plans, in contrast to half

of noncontingent workers. Moreover, contingent workers were

much less likely than noncontingent workers to be eligible

Table 11. Employed contingent and noncontingent wage and salary workers with health insurance coverage

 by occupation and industry, February 1997

Contingent workers (estimate 3)1 Noncontingent workers2

Through Through

current Through current Through

 Total employer other job Total employer other job

at main or union at main or union

 job job

Managerial and professional specialty .... 1,497 80.7 40.9 1.5 54.2 30,610 92.5 75.6 0.3 86.4

Executive, administrative,

and managerial .................................. 372 77.7 39.5 1.1 53.8 14,415 91.2 75.2 .4 86.3

Professional specialty ......................... 1,125 81.7 41.4 1.6 54.4 16,195 93.7 76.0 .3 86.6

Technical, sales, and administrative

support .............................................. 1,523 71.0 13.9 1.9 30.5 32,451 85.5 58.1 .5 73.4

Technians and related support .............. 184 70.7 28.3 1.1 56.0 3,851 90.5 70.3 .5 83.8

Sales occupations ................................. 256 66.0 10.2 1.2 25.0 11,916 79.9 47.5 .6 63.3

Administrative support,

including clerical ................................ 1,082 72.4 12.2 2.2 27.5 16,684 88.4 62.8 .4 78.2

Service occupations ............................... 736 61.4 9.1 .8 19.6 14,759 68.5 37.5 .6 50.8

Private household ................................. 99 40.4 (

3

) (

3

) 3.0 533 46.0 4.5 (

3

) 6.4

Other services ....................................... 636 64.8 10.5 .9 22.2 14,226 69.3 38.8 .6 52.5

Precision production, craft,

and repair ............................................ 508 62.2 25.8 20.7 33.1 11,230 79.5 65.4 2.4 75.6

Operators, fabricators, and laborers ....... 729 46.0 16.0 2.7 28.4 16,206 77.9 61.5 1.0 73.5

Farming, forestry, and fishing .................. 147 37.4 9.5 (

3

) 12.2 1,443 54.4 34.0 .1 41.2

 Industry

Agriculture ............................................... 126 44.4 12.7 (

3

) 18.3 1,350 57.0 33.6 .1 41.5

Mining ..................................................... 25 (

4

) (

4

) (

4

) (

4

) 575 90.1 85.4 (

3

) 90.8

Construction ............................................ 515 55.5 20.0 20.6 28.7 5,222 70.0 48.3 4.7 60.2

Manufacturing ......................................... 436 57.3 32.8 .7 45.2 19,576 87.9 78.1 .3 88.1

Durable goods ....................................... 245 62.0 35.5 1.2 49.8 11,809 89.3 80.4 .3 90.1

Nondurable goods ................................. 188 52.7 29.8 (

3

) 39.4 7,697 86.0 74.7 .3 85.4

Transportation and public utilities ............ 193 78.2 28.5 9.8 46.1 7,958 88.4 76.0 .7 85.3

Wholesale trade ...................................... 78 62.8 29.5 (

3

) 35.9 4,182 85.5 68.1 .9 80.1

Retail trade .............................................. 487 58.5 7.6 .8 22.6 18,060 70.6 35.2 .8 51.7

Finance, insurance, and real estate ...... 160 71.3 27.5 (

3

) 34.4 6,902 90.0 67.5 .5 81.6

Services ................................................ 2,887 70.8 21.9 1.6 35.7 37,537 84.3 58.8 .5 72.4

Private household ............................... 124 42.7 (

3

) 1.6 2.4 606 44.1 4.5 (

3

) 7.3

Other services ..................................... 2,763 72.0 22.8 1.6 37.2 36,931 85.0 59.7 .5 73.4

Professional and related services ......... 1,834 79.3 30.0 1.5 42.0 26,814 89.3 64.3 .4 77.9

 Occupation and industry

Occupation

Percent with health

insurance coverage

Percent with health

insurance coverage

Total

(in

thousands)

Total

(in

thousands)

Percent

eligible for

employerprovided

health

insurance

Percent

eligible for

employerprovided

health

insurance
32 Monthly Labor Review November 1998

Table 12 Employed contingent and noncontingent wage and salary workers with pension coverage by selected

 characteristics, February 1997

Contingent workers (estimate 3)1 2

Percent eligible

Total Percent with Total Percent with

(in thousands) pension (in thousands) pension

coverage pension pension

 Age and sex

 Total, 16 years and older ............ 5,140 15.9 23.1 106,697 50.0 57.2

16 to 19 years .................................. 664 .6 5.6 5,272 4.4 14.7

20 to 24 years .................................. 945 3.1 11.1 10,653 20.6 34.7

25 years and older ........................... 3,531 22.2 29.6 90,773 56.1 62.3

25 to 34 years ............................... 1,251 13.7 24.0 27,845 47.9 57.0

35 to 44 years ............................... 1,041 23.9 29.9 29,790 58.9 64.6

45 to 54 years ............................... 683 32.4 38.9 21,539 63.9 68.1

55 to 64 years ............................... 393 29.0 34.1 9,349 59.7 63.4

65 years and older 163 19.0 21.5 2,249 31.5 38.0

Men .................................................. 2,547 16.5 24.1 55,754 52.3 58.8

Women ............................................. 2,593 15.3 22.2 50,944 47.5 55.4

 Race and Hispanic origin

White .................................................. 4,177 17.1 24.2 90,098 50.3 57.4

Black .................................................. 585 9.1 15.4 12,218 50.0 57.8

Hispanic origin ................................... 610 8.5 16.4 10,534 31.5 38.4

 Full- and part-time status

Full-time workers ............................... 2,890 23.6 32.4 87,378 57.2 64.6

Part-time workers ............................... 2,230 6.0 10.9 19,067 17.2 23.6

 Educational attainment3

Less than a high school diploma ....... 495 8.3 13.9 10,882 27.0 33.2

High school graduates, no college ..... 1,116 15.1 20.8 34,508 46.5 54.2

Some college, no degree ................... 783 16.6 26.3 18,901 53.0 60.5

Associate degree ............................... 308 21.8 28.9 8,989 58.5 67.1

College graduates .............................. 1,381 29.4 38.9 26,998 69.0 75.0

for pensions from their employers—slightly less than onefourth of those with contingent jobs were offered employerprovided pensions, compared with nearly three-fifths of

noncontingent workers.

Contingent workers under the age of 25—who make up

nearly a third of all contingent workers—were much less likely

than those aged 25 to 54 to participate in pension plans or to

be employed in industries that have a higher probability of

offering pensions. Among workers in each age group, those

with contingent jobs were less likely than those holding

noncontingent jobs to have, or to be eligible for, employerprovided pensions. Finally, as with health insurance coverage, contingent workers had lower rates of pension coverage

and eligibility than noncontingent workers in virtually every

occupation and industry group. (See table 13.)

AS THE ECONOMY EXPANDED and the labor market strengthened

between 1995 and 1997, both the number of contingent workers

and the proportion of total employment made up of such workers declined. The overall characteristics of these workers, however, changed little over the period. In both surveys, for example, contingent workers were more likely to be women, under

the age of 25, enrolled in school, and to be employed part time.

Workers in construction and services continued to have the

greatest likelihood of holding a contingent job. However, as

in the first survey, contingent workers were likely to be found

in both high- and low-skilled occupations. Workers in professional specialty occupations and in administive support, including clerical, for example, were about equally likely to

work in contingent jobs.

Although most contingent workers would have preferred a

noncontingent job, many were satisfied with their current ar1

 Contingent workers are defined as individuals who do not perceive themselves as having an explicit or implicit contract with their employers for ongoing

employment. Estimate 3 above is calculated using the broadest definition. For

the specific criteria used for each definition, see the appendix, pp. 34–35.

2

 Noncontingent workers are those who do not meet the criteria for any of

the three definitions of contingent work.

3

 Excludes workers age 16 to 24 enrolled in school.

Characteristic
 Monthly Labor Review November 1998 33

Table 13. Employed contingent and noncontingent wage and salary workers with pension coverage by occupation

 and industry, February 1997

Contingent workers (estimate 3)1 Noncontingent workers2

Total Total

(in thousands) (in thousands)

 Occupation

.......................... 1,497 36.6 30,610 72.7

 Executive, administrative, and managerial 372 33.9 14,415 63.2

 Professional specialty ................................................. 26.3 34.8 70.0 75.5

................ 1,523 19.4 32,451 57.2

 Technicians and related support 184 15.2 3,851 59.3

 Sales occupations ....................................................... 3.9 13.7 36.0 44.7

.................... 1,082 20.2 16,684 63.5

Service occupations 736 6.1 14,759 28.6

 Private household ....................................................... 3.0 3.0 1.3 1.5

............................................................. 636 13.2 14,226 36.6

Precision production, craft, and repair 508 21.3 11,230 49.5

Operators, fabricators, and laborers ............................. 9.7 14.5 44.3 52.6

........................................ 147 10.2 1,443 20.6

 Industry

..................................................................... 126 11.1 1,350 17.8

Mining 25 (

3

) (

3

) 575 66.4 71.8

Construction .................................................................. 515 14.6 21.2 5,222 31.6 37.2

Manufacturing ............................................................... 436 22.0 32.6 19,576 62.0 69.9

 Durable goods ............................................................ 245 23.7 33.1 11,809 64.2 71.8

 Nondurable goods ...................................................... 188 20.2 31.9 7,697 58.9 67.2

Transportation and public utilities ................................. 193 28.5 34.7 7,958 65.2 71.2

Wholesale trade ............................................................ 78 7.7 19.2 4,182 51.5 57.6

Retail trade ................................................................... 487 4.1 11.7 18,060 23.7 32.5

Finance, insurance, and real estate .............................. 160 26.9 35.0 6,902 57.8 66.6

Services ........................................................................ 2,887 14.8 20.9 37,537 49.7 56.9

 Private household ....................................................... 124 2.4 2.4 606 2.1 3.0

 Other services ............................................................. 2,763 15.3 21.8 36,931 50.5 57.8

 Professional and related services ............................. 1,834 20.3 26.4 26,814 58.7 65.6

Public administration ..................................................... 234 39.3 52.6 5,336 89.1 91.1

1

 Contingent workers are defined as individuals who do not perceive themselves as having an explicit or implicit contract with their employers for ongoing

employment. Estimate 3 above is calculated using the broadest definition. For

the specific criteria used for each definition, see the appendix, pp.34–35.

2

 Noncontingent workers are those who do not meet the criteria for any of

the three definitions of contingent work.

3

 Data not shown where base employment is less than 75,000.

rangement. Specifically, younger workers were about as likely

to prefer contingent arrangements as noncontingent ones, probably because a large number were enrolled in school and thus

were less concerned with establishing longstanding relationships with their employers. Compared with the first survey,

contingent workers in 1997 were more likely to have cited

personal, rather than economic, reasons for being in contin1

 For an explanation of the three measures, as well as other relevant

concepts and definitions, see the appendix, pp. 34–35. For more on the

definitions, as well as analysis of the results of the 1995 survey, see the

articles in the special issue of the Monthly Labor Review on contingent

workers and alternative work arrangements, October 1996.

2

 Contingency rates are calculated by dividing the number of contingent workers in a specified worker group by total employment for the same

worker group.

3 For instance, the unemployment rate was 5.4 percent in February 1995

and 5.3 percent in February 1997, both low by historical standards. Employment growth, as measured by the Current Employment Statistics (CES)

survey, a monthly sample survey of about 390,000 nonfarm business establishments, averaged 206,000 per month between the two survey dates.

4

 The Current Population Survey (CPS) is a nationwide sample survey

of about 50,000 households, conducted monthly by the Bureau of the Census for the Bureau of Labor Statistics. The CPS collects information about

the demographic characteristics and employment status of the noninstitutional working-age population (16 years and older). Special supplements

Footnotes

gent arrangements, implying that workers were more likely to

have chosen contingent work in the most recent survey.

Finally, contingent workers earned less and were less likely

than noncontingent workers to have been included in employer-provided health insurance or pension plans. When comparing the wages and benefits of contingent and noncontingent

workers, however, there was considerable variation by age,

educational attainment, occupation, and industry. 

Occupation and Industry Percent

eligible for

employerprovided

pension

 Percent

eligible for

employerprovided

pension

Percent with

pension

coverage

Percent with

pension

coverage
34 Monthly Labor Review November 1998

APPENDIX: Concepts and definitions

The supplement to the February 1997 Current Population Survey

obtained information on workers in contingent jobs, or jobs that

were expected to last only for a limited period. Additional information was collected on employees working under alternative employment arrangements—namely, working as independent contractors or being “on call,” as well as working through temporary help

agencies or contract firms. (A companion article in this issue by

Sharon R. Cohany presents a profile of workers in alternative employment arrangements.) All employed persons except unpaid family workers were included in the supplement. For persons holding

more than one job, the questions referred to the characteristics of

their main job—the job in which they worked the most hours. A

similar survey was conducted in February 1995.

The contingent workforce

Contingent workers were defined as those who do not have an explicit or implicit contract for long-term employment. Several pieces

of information were collected in the supplement from which the

existence of a contingent employment arrangement could be discerned: whether the job was temporary or not expected to continue, how long the worker expected to be able to hold the job, and

how long the worker had held the job. For workers who had a job

with an intermediary, such as a temporary help agency or a contract

company, information was collected about their employment at the

place they were assigned to work by the intermediary as well as

their employment with the intermediary itself.

The key factor used to determine if a job fit the conceptual definition of contingent work was whether the job was temporary or not

expected to continue. The first two questions in the supplement were:

1. Some people are in temporary jobs that last only for a limited

time or until the completion of a project. Is your job temporary?

2. Provided the economy does not change and your job performance is adequate, can you continue to work for your current employer as long as you wish?

Respondents who answered “yes” to the first question, or “no”

to the second, were then asked a series of questions to distinguish

persons who were in temporary jobs from those who, for personal

reasons, were temporarily holding jobs that offered the opportunity

of ongoing employment. For example, students holding part-time

jobs in fast-food restaurants while in school might view those jobs

as temporary if they intend to leave them at the end of the school

year. The jobs themselves, however, would be filled by other workers once the students leave. Jobs were defined as being short term

or temporary if the person was working only until the completion

of a specific project, temporarily replacing another worker, being

hired for a fixed period, filling a seasonal job that is available only

during certain times of the year, or if other business conditions dictated that the job was short term.

Workers also were asked how long they expected to stay in their

current job and how long they had been with their current employer.

The rationale for asking how long an individual expects to remain

in his or her current job was that being able to hold a job for a year

or more could be taken as evidence of at least an implicit contract

for ongoing employment. In other words, the employer’s need for

the worker’s services is not likely to evaporate tomorrow. By the

same token, the information on how long a worker has been with

the employer shows whether a job has been ongoing. Having remained with an employer for more than a year may be taken as

evidence that, at least in the past, there was an explicit or implicit

contract for continuing employment.

To assess the impact of altering some of the defining factors on the

estimated size of the contingent workforce, the following three measures of contingent employment were developed:

Estimate 1. The narrowest definition, estimate 1 defines continto the CPS occasionally are added to the survey questionnaire to obtain

information on various topics of interest. The first CPS supplement on contingent work and alternative work arrangements was conducted in February 1995. This article examines data from the 1997 supplement, comparing the results with those obtained in 1995.

5

 The two narrower estimates of contingency (estimates 1 and 2) require a 1-year tenure restriction on workers’ current and expected tenure

with their employers. The broadest definition of contingency (estimate 3)

removes this tenure restriction and basically includes all workers who say

that their jobs are temporary. Although the median tenure for contingent

workers under the broadest definition (0.7 year) was much less than that for

noncontingent workers (5 years), 45 percent of these contingent workers had

been with their employers for 1 year or more.

6 Although contingent workers were employed in all industries, they were

disproportionately concentrated in services and construction. In both the 1995

and 1997 surveys, more than half of all contingent workers were employed

in the services industry, and an additional 10 percent were employed in the

construction industry. As the contingency rates show, however, the vast majority (93 percent) of workers in these two industries were not contingent.

7 For an in-depth discussion of the prevalence of contingent work in

post-secondary education, see Kathleen Barker, “Contingent Work in Higher

Education,” in Kathleen Barker and Kathleen Christensen, eds., Contingent

Work: American Employment Relations in Transition (Cornell University

Press, 1998).

8 See Kathleen Christensen, “Countervailing Human Resource Trends in

Family-Sensitive Firms,” in Barker and Christensen, Contingent Work.

9 It should be noted that under estimate 1, the proportion of workers aged

25 years and older who were dissatisfied with their arrangement was much

higher than under estimate 3.

10 In the survey, information concerning preferences for a contingent or

noncontingent job was collected separately from the reasons for holding a

contingent job. Thus, a contingent worker could prefer noncontingent work

but still provide a personal reason for holding a contingent job.

11 In the survey, respondents were asked, “Do you have health insurance

from any source?” If the response was “yes,” they were then asked if their

insurance was provided by their employer. Those who did not receive health

insurance from their employer were asked for the source of their health insurance; in addition, they were asked if they were eligible for employerprovided health insurance. Respondents who said “no” to the initial question were asked, “Does (employer’s name) offer a health insurance plan to

any of its employees?” If the answer to that question was “yes,” the respondent was then asked, “Are you included in this plan?” If the response was

“no,” the respondent was asked, “Why not?” The answer to this question

was used to determine whether or not the respondent was eligible to receive

insurance from his or her employer.

12 In the survey, respondents were asked, “Does (employer’s name) offer

a pension or retirement plan to any of its employees?” If they answered “yes,”

they were then asked, “Are you included in this plan?” If the response was

“no,” respondents were then asked “Why not?” The response to this last

question was used to determine eligibility for those not in the plan.

Contingent Work
 Monthly Labor Review November 1998 35

gent workers as wage and salary workers who indicated that they

expected to work in their current job for 1 year or less and who had

worked for their current employer for 1 year or less. Self-employed

workers, both incorporated and unincorporated, and independent contractors are excluded from the count of contingent workers under estimate 1; the rationale was that people who work for themselves, by

definition, have ongoing employment arrangements, although they may

face financial risks. Individuals who worked for temporary help agencies or contract companies are considered contingent under estimate 1

only if they expect their employment arrangement with the temporary

help or contract company to last for 1 year or less, and they had worked

for that company for 1 year or less.

Estimate 2. This measure expands the definitions of contingent

workers by including the self-employed (incorporated and unincorporated) and independent contractors who expect to be, and had

been, in such employment arrangements for 1 year or less. (The

questions asked of the self-employed are different from those asked

of wage and salary workers.) In addition, temporary help and contract company workers are classified as contingent under estimate 2

if they had worked and expected to work for the customers to whom

they were assigned for 1 year or less. For example, a “temp” secretary who is sent to a different customer each week but has worked

for the same temporary help firm for more than 1 year and expects

to be able to continue with that firm indefinitely is contingent under

estimate 2, but not under estimate 1. In contrast, a “temp” who is

assigned to a single client for more than a year and expects to be

able to stay with that client for more than a year is not counted as

contingent under either estimate.

Estimate 3. The third definition expands the concept of contingency by removing the 1-year requirement on expected duration of

the job and on tenure in the current job (for wage and salary workers).

Thus, the estimate effectively includes all the wage and salary workers

who do not expect their employment to last, except for those who, for

personal reasons, expect to leave jobs that they would otherwise be

able to keep. Thus, a worker who had held a job for 5 years could be

considered contingent if he or she now viewed the job as temporary.

These conditions on expected and current tenure are not relaxed for the

self-employed and independent contractors, because they were asked a

different set of questions from wage and salary workers.

Alternative employment arrangements

To provide estimates of the number of workers in alternative

employment arrangements, the February 1997 CPS supplement

included questions about whether individual workers were paid

by a temporary help agency or a contract company, or whether

they were “on call” or independent contractors. The definitions

of each category, as well as the main questions used to identify

workers in each category, follow.

Independent contractors. Workers who were identified as independent contractors, consultants, and freelance workers in the

supplement—regardless of whether they were identified as wage

and salary workers or self-employed in the responses to basic CPS

labor force status questions—all are classified as independent contractors. Workers identified as self-employed (incorporated and

unincorporated) in the basic CPS were asked, “Are you self-employed

as an independent contractor, independent consultant, freelance

worker, or something else (such as a shop or restaurant owner)?” in

order to distinguish those who consider themselves to be independent contractors, consultants, or freelance workers from those who

were business operators such as shop owners or restaurateurs. Those

identified as wage and salary workers in the basic CPS were asked,

“Last week, were you working as an independent contractor, an

independent consultant, or a freelance worker? That is, someone

who obtains customers on their own to provide a product or service.” (About 88 percent of independent contractors were identified as self-employed in the main questionnaire, while 12 percent

were identified as wage and salary workers; conversely, about half

of the self-employed were identified as independent contractors.)

On-call workers. These are persons who are called into work only

when they are needed. This category includes workers who answered affirmatively to the question, “Some people are in a pool of

workers who are ONLY called to work as needed, although they can

be scheduled to work for several days or weeks in a row—for example, substitute teachers and construction workers supplied by a

union hiring hall. These workers sometimes are referred to as ONCALL workers. Were you an ON-CALL worker last week?” Persons

with regularly scheduled work that might include periods of being

on call to perform work at unusual hours, such as medical residents, were not included in this category.

Temporary help agency workers. These are workers who were paid

by a temporary help agency. To the extent that permanent staff of temporary help agencies indicate that they are paid by their agencies, the

estimate of the number of workers whose employment was mediated

by temporary help agencies is overstated. This category includes workers

who said that their job was temporary and answered “yes” to the question, “Are you paid by a temporary help agency?” Also included are

workers who said their job was not temporary and answered affirmatively to the question, “Even though you told me your job was not

temporary, are you paid by a temporary help agency?”

Workers provided by contract firms. These are individuals identified as working for a contract company and who usually work for

only one customer, usually at the customer’s worksite. The last two

requirements were imposed to focus on workers whose employment appeared to be very closely tied to the firm for which they

were performing the work, rather than on all workers employed by

firms that provide services to other firms. This category included

workers who answered “yes” to the question, “Some companies

provide employees or their services to others under contract. A few

examples of services that can be contracted out include security,

landscaping, or computer programming. Did you work for a company that contracts out you or your services last week?” These workers also had to respond negatively to the question, “Are you usually

assigned to more than one customer?” They also had to answer “yes”

to the question, “Do you usually work at the customer’s worksite?”