This Issue Brief presents a comprehensive description of
contingent workers and workers in alternative work arrangements. The report discusses the advantages and disadvantages of contingent employment to both employers and workers. It describes recent trends in the use of contingent employment, characteristics of contingent workers and workers in alternative work arrangements, and these workers' employee benefits. The report also identifies public policy issues.
In 1995, contingent workers accounted for between 2.2 percent and
4.9 percent of the labor force, and workers in alternative work arrangements accounted for
9.9 percent of total employment. By 1997, the contingent work force had declined slightly,
ranging from 1.9 percent to 4.4 percent, while the percentage of workers in alternative
arrangements remained the same. The decline in contingent work between 1995 and 1997 could
be the result of the strong economy, especially if there was an increase in the number of
noncontingent jobs over this period.
Contingent workers and workers in alternative work arrangements
are much less likely to have had any health insurance than noncontingent workers and
workers in traditional work arrangements. Between 61 percent and 66 percent of contingent
workers had health insurance coverage in 1997, compared with over 82 percent of
noncontingent workers. Furthermore, while 83 percent of workers in traditional work
arrangements had health insurance, only 46.5 percent of temporary help agency workers and
66.6 percent of on-call workers had health insurance.
Contingent workers were less likely than noncontingent workers to
have been offered coverage. They were more likely to be working for an employer that did
not offer coverage to any workers, and more likely to be working for an employer that
offered coverage for which they were not eligible. Contingent workers offered coverage
were less likely than noncontingent workers offered coverage to report that they were
covered by other health insurance and more likely to report that the plan that was offered
was too costly.
Contingent workers and workers in alternative work arrangements were much less likely to
have participated in a retirement plan than noncontingent workers and workers in
traditional work arrangements. In fact, 15.9 percent of contingent workers participated in
a retirement plan in 1997, compared with almost 50 percent of noncontingent workers.
Furthermore, while approximately 50 percent of workers in traditional work arrangements
participated in an employment-based retirement plan, only 3.7 percent of temporary help
workers, 13.4 percent of independent contractors, 18.6 percent of on-call workers, and
35.7 percent of workers provided by contract firms participated in such a plan.
