MIT News breed · Wetenschap

35% of US Employees Are 'Disposable Workers' Lacking Prospects, New Book Argues

A new book by MIT Professor Emeritus Paul Osterman, "Disposable Workers: The Transformation of Employment," highlights a growing trend in the U.S. workforce where a significant portion of employees lack career prospects and stability. Osterman defines "marginal workers" as employees with no career path within their organizations, who are not intended to be long-term fixtures.

Osterman's analysis indicates that 35 percent of U.S. workers fall into categories of "disposable" employment, including marginal employees, freelancers, contractors, and gig workers found on online platforms. This group represents over 55 million individuals in the American workforce.

The book, published by Harvard University Press, examines these "disposable" worker categories, arguing they are a result of firms' efforts to control labor costs and increase flexibility, often leaving workers in precarious situations. Osterman's research, including a survey of over 6,000 workers, found that approximately 17 percent are marginal workers, 12 percent are contract workers, and 5 percent are organizational freelancers, with gig workers making up about 1 percent.

The common thread among these employment types is the firms' drive to reduce labor expenses and gain managerial discretion, leading to fewer workers with promotion opportunities, benefits, and job security. Osterman suggests that while firms create jobs and products, their primary focus is profit maximization, leading them to prioritize lower labor costs over worker commitment and stability, even if long-term productivity might be affected.

Osterman believes this trend could be exacerbated by artificial intelligence, which may increase uncertainty for firms regarding staffing needs, further encouraging the use of disposable workers. While acknowledging that unions and advocacy groups can improve worker conditions, he emphasizes that the first step to addressing the issue is making it a recognized problem. Without public and political pressure, Osterman contends, efforts to reverse this trend will be limited.

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