Does the Growth in the ContingentWork Force Demand a Changein Federal Policy

Today's work force is in the midst of a massive realignment. Contingent -- part-time, temporary, contract, on-call, and leased -- work is on the rise, accounting for nearly 25% of the work force. Employment laws and policies, however, concerning health insurance, pension benefits, on-the-job training, unemployment benefits, and more were largely established for full-time, full-year employment with a single employer. As a result, contingent workers do not receive the same benefits and pay that full-time employees receive. Lawmakers need to address the inequities that millions of contingent workers face by bringing the laws in line with the real world.The Rise in Part-Time and Temporary WorkTo say that contingent work is a mainstay of today's work force is not an overstatement. One need only look at Manpower, Inc., a Milwaukee, Wisconsin based temporary employment agency. With over 500,000 employees, it is not only the world's largest temporary agency, but it is the largest private employer in America.(1) Manpower provides skilled workers at a moment's notice to companies of all sizes, allowing them to meet their flexibility needs without compromising productivity. While secretarial and clerical positions are the most common types of temporary jobs, other higher skilled professions are witnessing the emergence of temporary workers filling assignments as doctors, lawyers, managers, and even chief executive officers. From 1978 to 1985, the temporary help industry grew eight times faster than all nonagricultural industries.(2) From 1982 to 1990, the temporary help industry grew ten times faster than the work force as a whole.(3) Moreover, although there are almost no comprehensive data available, the number of temporary employees who are directly hired by firms probably outnumbers those hired through temporary services.Part-time workers constitute approximately one-fifth of the work force.(4) Between 1969 and 1993, the number of part-time workers increased from 10.8 million to 20.7 million, or 91.7%.(5) This growth represented 24.6% of the growth in the work force, which totaled 40.3 million at that time.(6) It is expected that the contingent work force will comprise one-half of the labor force by the year 2000.(7) The statistics on the quality of part-time and temporary jobs and the number of such workers indicate a growing number of under-paid and under-insured workers at the mercy of a fluctuating economy and a restructuring of corporate America.Part-time workers are classified generally as voluntary or involuntary. Voluntary part-time workers are those who prefer to work part time because they prefer the shorter hours, have certain self-imposed travel or child care restrictions, or enjoy the extra income, but who are not forced into part-time work as their primary and only means of subsistence. Conversely, involuntary part-time workers are those who would prefer to work a full-time, permanent job but cannot find such work.Involuntary part-time workers accounted for two-thirds of the growth of all part-time workers between 1969 and 1988.(8) Between 1969 and 1993, the involuntary part-time work force increased from 1.8 million to 6.1 million -- an average increase of 5.2% per annum.(9) With the trends in corporate hiring emphasizing a fluctuating and smaller employee base, companies are creating more part-time jobs. Consequently, the increase in the number of involuntary part-time workers has surpassed the increase in the number of voluntary part-time workers.(10) Not surprisingly, women and minorities are represented disproportionately in the part-time and temporary work force. For example, the percentage of African Americans in the temporary work force is double that of the whole work force.(11) Moreover, two out of every three temporary workers are women.(12) Women and minority groups, therefore, suffer a disproportionate share of the drawbacks of involuntary part-time and temporary employment -- lower per-hour wages than full-time workers;(13) reduced or no employment-based health, retirement, and other benefits; and the constant threat of being released with little or no warning. …