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Archive for July 19th, 2012

Mother Jones has another dispatch from the excellent Economic Hardship Reporting Project, with this edition focused on temporary employment. It underscores, in visceral detail, how an increasingly prevalent mode of employment leaves workers economically insecure (and often unsafe).

To get one thing straight, the temporary sector isn’t exactly taking over the economy. There is a difference between “fast growing” and “huge,” and this sector is clearly the former:

In the early 1980s, employment in the “temporary help services” industry—which covers both temp workers and employees of the firms that supply them—stood in the several hundreds of thousands. Now it’s 2.5 million, a seven-fold increase in less than four decades. By 2020, the BLS foresees more than 440,000 new jobs in the sector.

However, the details of it are depressing:

Back at the Labor Ready office, I have to wait nearly 30 minutes to receive my check. The job paid $8 an hour—minimum wage. For five hours of labor, I get $37.34 after taxes. I am not paid, however, for the four hours on call, or the time spent in transit to and from the job site, or waiting to get paid. None of this meets the legal definition of wage theft, but it sure feels like it…

Labor Ready’s Oakland workforce is nearly entirely black, excepting the branch manager, who is white. Most of the workers I talk to are searching for stability but finding it elusive. They include homeowners in foreclosure, apartment-dwellers who are being evicted, and residents of motels negotiating for a few more days. And many express hope they can parlay a temp gig into something permanent…

The potential to convert a temp job into full-time employment is one of the benefits promoted by Labor Ready, but the company doesn’t actually know at what rate this happens…

Yet there’s little evidence to support the claim that temp agencies help impoverished workers…Providing low-skill workers with a temp job, they wrote, “is no more effective than providing no job placements at all.”

There is not really a big policy takeaway from this. There will always be a need for low-skilled workers, and it seems like increasingly these jobs will not even offer the protections of permanent employment. Certain things, like strengthening the safety net and increasing the minimum wage, will be a help. However, the growth of the temporary model may be seen as undermining any gains that organized labor or cooperative enterprises might seek- it would be hard to imagine either growing as fast as this sector. Clearly, our society will need to rethink how labor can have solid footing in a temp economy.

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