contracting out in the united states prevalence and implications n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Contracting Out in the United States: Prevalence and Implications PowerPoint Presentation
Download Presentation
Contracting Out in the United States: Prevalence and Implications

Loading in 2 Seconds...

play fullscreen
1 / 12

Contracting Out in the United States: Prevalence and Implications - PowerPoint PPT Presentation


  • 93 Views
  • Uploaded on

Contracting Out in the United States: Prevalence and Implications. Susan Houseman, Upjohn Institute Presentation prepared for the NELP conference on Outsourced Work: Insourcing Responsibility , May 12, 2014, Washington, DC.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Contracting Out in the United States: Prevalence and Implications


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
contracting out in the united states prevalence and implications

Contracting Out in the United States: Prevalence and Implications

Susan Houseman, Upjohn Institute

Presentation prepared for the NELP conference on Outsourced Work: Insourcing Responsibility, May 12, 2014, Washington, DC

what do we know about contracting out in the us very little from government statistics
What do we know about contracting out in the US? (Very little from government statistics)
  • Ongoing BLS household and establishment surveys
    • Collect information on employment by industry
    • Unless industry clearly made up of contract companies (e.g. temp help), can’t identify contract workers
    • Don’t know who is using contract workers
  • BEA builds input-output tables for the economy
    • Should capture all contract relationships in the economy
    • Used to estimated labor used by one industry from another
    • I-O tables show significant increase in domestic contracting
    • But, data underlying estimates spotty—imputations crude
  • Contingent Worker Supplements to the CPS
    • Administered 5 times from 1995 to 2005
    • Designed to fill data gaps
categories of contract work in cps supplement
Categories of Contract Work in CPS Supplement
  • Independent contractors:
    • Includes independent contractors, independent consultants& freelance workers
  • Temporary help agency workers
    • Survey collected information on where assigned
  • Contract company workers:
    • Workers employed by a company that provides them or their services to other organizations under contract
    • Usually assigned to only one customer and usually work at the customers’ worksite
    • Survey collected information on client industry
contract workers as of workforce
Contract Workers as % of Workforce

Source: CWS, average incidence 1995-2005

Some concerns that survey understates true levels of contract work.

focus on temporary help
Focus on Temporary Help
  • Best measured, most studied of contract employment types
  • Experienced rapid growth in recent years
  • Some of forces driving growth in temporary help employment likely causing growth in other types of contract employment.
employment growth since last cyclical peak
Employment Growth Since Last Cyclical Peak

Temp help industry experienced

Much greater contraction during recession

Much stronger recovery

Temp employment now at all time high in numbers & as % of workforce

why employers use temporary help
Why Employers Use Temporary Help
  • Meet short-term staffing or project-based needs
    • Temp staffing allows firms to easily flex up and down workforce
    • More closely match workforce to needs
  • Save on labor costs
    • Just in time workforce--only pay workers when need them
    • May save on hourly wages and benefits costs
  • Screen workers for potential hire
  • Employer mandate in ACA may boost demand for agency staffing
occupational distribution
Occupational Distribution

Source: OES, 2006

Low-wage, minority workers over-represented in temporary help.

how temporary are temporary help jobs
How Temporary Are Temporary Help Jobs?
  • Most assignments relatively short-lived:
    • Across all occupations: median 3 weeks; 90th percentile 6 months
    • Reflects fact that many quit or terminated before assignment ends
  • Most work occurs in assignments lasting much longer:
    • Across all occupations: half of all hours worked in assignments lasting 6 months or more; a quarter of all hours worked in assignments lasting 1 year or more
    • In production: half of all work in assignments lasting 5+ months
    • In science, engineering, and IT occupations: half of all work in assignments lasting 10+months.
implications for workers wages and benefits
Implications for Workers: Wages and Benefits
  • Hourly wages not necessarily lower than hourly wages earned by comparable workers in direct-hire jobs.
  • Quarterly earnings lower – because work is sporadic
  • Temporary help workers rarely earn health insurance, retirement, or other benefits.
implications for workers are temp jobs stepping stones to better jobs
Implications for Workers: Are Temp Jobs Stepping Stones to Better Jobs?
  • Temporary help not “great” jobs – most temp workers are seeking permanent, direct-hire employment
  • Government employment programs in US and Europe place large share of clients with temp agencies:
    • Seen as a way to build contacts and experience
    • Stepping stone to better jobs
  • Research evidence on low-wage workers:
    • Temp jobs, on average, do not help workers move to regular, more stable employment
    • Placing workers into direct-hire jobs results in higher earnings and employment over the medium term.