Cambridge, MA, Aug. 11, 2026 (GLOBE NEWSWIRE) — Across the U.S. economy, a growing number of employers are rewriting the rules of employment to gain flexibility and cut long-term costs, leaving roughly a third of American workers without job security, benefits, or a path to promotion.
In his new book out today, Disposable Workers: The Transformation of Employment, MIT Sloan School of Management professor emeritus Paul Osterman documents how tens of millions of Americans now work as contractors, freelancers, and part-timers, without the protections that come with a traditional full-time job. Published by Harvard University Press, the book offers a detailed look at how American employment is changing, and what it costs workers in pay, stability, and career advancement.
Who are “Disposable Workers” and what do their jobs look like?
Osterman’s findings are based on a survey he conducted of more than 6,000 civilian, nonagricultural working adults, along with nearly 100 interviews with workers, employers, and staffing agencies. He calculates that 35% of workers are “disposable,” a group that includes contractors as well as freelancers, some of whom are gig workers.
It also includes what he calls “marginal workers,” people who are technically on staff but never fully brought into their organizations. Examples include adjunct faculty sidelined from the tenure track, staff attorneys who handle routine case work at Big Law firms without a shot of making partner, as well as large numbers of part-time employees and low-wage service workers.
Across all three groups, Osterman finds a common pattern: limited training, few opportunities for advancement, little job security, and minimal benefits, if any. This leaves workers with almost no path for a long-term career.
“When people talk about the gig economy, they’re picturing Uber drivers and DoorDashers. But that’s a small slice of this—less than two percent of the workforce,” said Osterman. “Contractors and other marginal workers make up a far larger share of the workforce. Add it up, and we’re not becoming a gig economy; we’re becoming a disposable one.”
Why do employers want freelancers and part-timers?
Osterman’s research finds that the pressure to cut costs and boost profit is pushing employers toward disposable work. Relying on contractors and part-timers instead of permanent staff lets companies expand or shrink their workforce on demand, without having to pay for expenses like training and health insurance.
Beyond the cost-savings, some companies deliberately keep workers under the legal thresholds to avoid triggering benefits like paid leave and protections against harassment and discrimination. Osterman said that many employers design part-time roles into their staffing model for this reason, since those workers tend to leave sooner and expect less from their jobs.
“Firms have found a lot of ways to avoid responsibility for the people who do their work,” he said. “They hire contractors, then cancel the contract when they don’t need them anymore. They build part-time and marginal jobs designed for high turnover, so no one sticks around long enough to become a real cost.”
Does disposable work cost companies, too?
Osterman has identified a cultural shift behind the numbers. His book cites decades of research showing that organizations perform better when they train and invest in their employees, a model long practiced by Toyota and other high-commitment employers.
“But many companies have moved away from that approach, cutting back on training even as their public rhetoric insists that employees are their greatest asset,” he said. “The truth is most workers are perceived as a cost, not something to invest in. And when profit is the thing that matters most, treating people as disposable looks like smart business.”
Not surprisingly, workers treated as disposable aren’t as loyal and tend to give less back. “Contractors and marginal workers in my survey said they’re much less likely to care about their organization’s success, and they’re not willing to put in extra effort,” he says.
Their lack of commitment likely takes a toll on the business. “But clearly, firms think the trade-off is worth it.”
How will AI impact disposable work?
The growing use of disposable workers predates AI, but AI is likely to accelerate the trend, according to Osterman. Because the new technology makes future staffing needs harder to predict, companies would rather hedge their bets with contractors and part-timers than hire full-time employees they may not need next year.
“Nobody really knows yet what AI is going to do to the number of jobs out there,” he said. “It’s costly to commit to full-time hires when a company might not know what they’ll need, so they want to keep options open until it all shakes out. And if they’re already relying on contractors and freelancers, this doesn’t require a new mindset. They keep doing more of what they were already doing.”
What are some policy and advocacy solutions to the problem of disposable workers?
Raising the floor on labor conditions will take a mix of policy reform, collective action, and pressure on the companies that rely on disposable workers, according to Osterman:
- Better defining who counts as an employee needs a stricter, more consistent standard. Today, interpretation and enforcement of the federal law depend largely on the politics of whoever is in the White House. Osterman noted that the ABC test, which presumes a worker is an employee unless a company proves otherwise, is already used by dozens of states and marks a meaningful step forward.
- Unions can improve conditions for the workers they represent. For instance, at Boston’s Logan Airport the local union chapter negotiated with Massport, the airport agency, for a wage floor for their contract workers, showing that unions can raise standards even beyond their own ranks.
- Local advocacy groups and community organizations can push cities and states to adopt minimum standards for contract workers. In New York, for instance, groups like Las Deliveristas Unidas, lobbied the city council to set a minimum wage for delivery drivers. Customer and civil society groups also successfully held companies accountable for their labor practices. The successful “Fight for $15” campaign, which led big-box retailers to raise wages, is one example of that approach.
“The goal of my book is to clarify this transformation of employment and add to the conversation of what can be done to rectify it,” said Osterman. “I believe a combination of political will, worker voice and government action can shape employment for the better. Understanding is the first step to action.”
Attachment
Casey Bayer MIT Sloan School of Management 914.584.9095 bayerc@mit.edu Patricia Favreau MIT Sloan School of Management 617.595.8533 pfavreau@mit.edu
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