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For release 10:00 a.m. (ET) Friday, November 8, 2024 USDL-24-2267 Technical information: (202) 691-6378 * cpsinfo@bls.gov * www.bls.gov/cps Media contact: (202) 691-5902 * PressOffice@bls.gov CONTINGENT AND ALTERNATIVE EMPLOYMENT ARRANGEMENTS -- JULY 2023 In July 2023, 4.3 percent of workers--6.9 million people--held contingent jobs on their sole or main job, the U.S. Bureau of Labor Statistics reported today. Contingent jobs are those that people do not expect to last or that are temporary. These workers do not have an implicit or explicit contract for ongoing employment in their jobs. In May 2017, the last time the survey was conducted, 3.8 percent of workers held contingent jobs. (See tables A and 1.) In addition to contingent workers, the survey also identified workers in four alternative work arrangements on their sole or main jobs. In July 2023, there were 11.9 million people who were independent contractors (7.4 percent of total employment), 2.8 million on-call workers (1.7 percent of total employment), 945,000 temporary help agency workers (0.6 percent of total employment), and 862,000 workers provided by contract firms (0.5 percent of total employment). (See tables A and 5.) Contingent work and alternative employment arrangements are measured separately. Some workers are both contingent and working in an alternative arrangement, but this is not necessarily the case. This news release includes new data on the contingent and alternative work arrangement status of second jobs held by multiple jobholders. The measures of contingent work and alternative employment arrangements are presented separately for a person's sole or main job and for the second job of multiple jobholders. For individuals with more than one job, the main job is the one in which they usually work the most hours. ___________________________________________________________________________________________ | | | Additional Estimates from the Contingent Work Supplement | | | | The July 2023 Contingent Work Supplement included questions on digital platform | | employment (app-based work) that are not included in this news release on contingent and | | alternative work arrangements. BLS intends to publish additional estimates from this | | supplement in the future, with the exact release date to be determined. The public use | | microdata file will be available after BLS has completed all releases of data from this | | supplement. Additional information, including notification of upcoming publications from | | this supplement, will be posted to www.bls.gov/cps/lfcharacteristics.htm#contingent when | | available. | |___________________________________________________________________________________________| This information was obtained from a supplement to the July 2023 Current Population Survey (CPS), a monthly sample survey of about 60,000 households that provides data on employment and unemployment in the United States. Prior to July 2023, data on contingent and alternative employment arrangements were collected periodically between February 1995 and May 2017. The concepts and definitions used in the supplement are included in the Technical Note in this news release. Also see www.bls.gov/cps/labor-force/contingent-and-alternative-arrangements-faqs-2023.htm for answers to frequently asked questions. Highlights from the July 2023 data: --There were 6.9 million workers whose sole or main job was contingent, representing 4.3 percent of the employed. (See table 1.) --Workers ages 16 to 24 were four times more likely to have contingent jobs than workers age 25 and older. (See table 1.) --With respect to alternative employment arrangements on the sole or main job, 7.4 percent of all workers were independent contractors, 1.7 percent were on-call workers, 0.6 percent were temporary help agency workers, and 0.5 percent were workers provided by contract firms. (See table 5.) --Compared to workers in traditional arrangements, independent contractors were more likely to be older, and temporary help agency workers were more likely to be Black or Hispanic. (See table 5a.) Contingent Status on Sole or Main Job In July 2023, 6.9 million workers were contingent on their sole or main job. The contingent rate, the percent of employed people who are in contingent jobs, was 4.3 percent. This is higher than the 3.8 percent of workers in May 2017. (See table A and the Technical Note for an explanation of the concepts.) Demographic Characteristics (Sole or Main Job) Younger workers were four times more likely to have contingent jobs than older workers. The contingent rate for workers ages 16 to 24 was 12.9 percent, compared with 3.1 percent for those ages 25 to 54 and 2.6 percent for those age 55 and older. (See tables 1 and 1a.) The contingent rates for men and women on their sole or main job were about the same (4.3 percent and 4.2 percent, respectively). Among the major race and ethnicity groups, White (4.1 percent) and Black (3.9 percent) workers were less likely to be contingent than Asian (5.9 percent) and Hispanic or Latino (6.0 percent) workers. While overall men and women were about equally likely to be contingent, among Hispanic workers, men were more likely to be contingent than women (6.6 percent versus 5.2 percent). People enrolled in school were much more likely to be contingent on their sole or main job than people not enrolled in school (15.5 percent versus 4.0 percent among those ages 16 to 54). About 1 in 5 people ages 16 to 54 with contingent jobs were enrolled in school. By educational attainment, workers with less than a high school diploma were much more likely to have a contingent job than those with higher levels of education. Among those age 25 and over, the contingent rate for workers with less than a high school diploma was 7.1 percent. Rates for other levels of education ranged from 2.2 percent for those with some college or an associate degree to 3.0 percent for workers with at least a bachelor's degree. Job Characteristics (Sole or Main Job) Part-time workers were three times more likely to have contingent jobs than were full-time workers (9.7 percent versus 3.2 percent). (See tables 2 and 2a.) As in previous surveys, workers who are contingent on their sole or main job can be found in each major occupational group. In July 2023, contingent rates were highest in natural resources, construction, and maintenance occupations (6.5 percent) and in service occupations (6.1 percent). Within the natural resources, construction, and maintenance occupations group, farming, fishing, and forestry occupations had the highest rate (17.9 percent). Within the service occupations group, rates ranged from 4.2 percent for healthcare support occupations to 9.3 percent for personal care and service occupations. Management, business, and financial operations occupations (2.1 percent) were among the occupations with the lowest contingent rates. About 1 in 10 contingent workers were employed in these occupations on their sole or main job, compared with 2 in 10 noncontingent workers. By industry, the contingent rates were highest in agriculture and related industries (10.4 percent) and in leisure and hospitality (7.7 percent). Within the leisure and hospitality industry, the highest rate was 14.1 percent for workers in the arts, entertainment, and recreation industry. Job Preference (Sole or Main Job) In July 2023, 44.8 percent of contingent workers would have preferred a permanent job as their sole or main job, while 40.8 percent preferred their contingent employment arrangement. The remainder expressed no clear preference. (See table 9.) Earnings and Health Insurance Coverage by Contingent Status (Sole or Main Job) Workers with contingent jobs earned less than those whose jobs were not contingent. Among full-time workers in July 2023, median weekly earnings on the sole or main job for contingent workers ($838) were 74 percent of those of noncontingent workers ($1,137). The disparity in earnings likely reflects the differences in the demographic and job characteristics, such as age and occupation, of those in contingent and noncontingent jobs. (See table 11.) In July 2023, workers in contingent jobs were much less likely to have employer-provided health insurance than workers in noncontingent jobs (19.9 percent versus 51.2 percent). Overall, 74.3 percent of workers whose sole or main job was contingent had health insurance coverage from any source, including coverage from another family member's policy, through a government program, or by purchasing it on their own, compared with 84.3 percent of workers in jobs that were not contingent. (See table 10.) Contingent Status on Second job About 5 percent of the employed are multiple jobholders, that is, they have more than one job. In July 2023, 1.1 million multiple jobholders had a second job that was contingent, accounting for 12.8 percent of all multiple jobholders. (See table 3.) Similar to the pattern of contingent rates on the sole or main job, younger multiple jobholders were more likely to have contingent second jobs than older workers. Workers ages 16 to 24 (18.7 percent) had a higher likelihood of being contingent on their second job than workers ages 25 to 54 (12.6 percent) and those age 55 and over (9.6 percent). Among multiple jobholders, the contingent rates of men and women on their second job were little different (11.4 percent versus 14.1 percent). Multiple jobholders in the major race and Hispanic ethnicity groups were about equally likely to be contingent on their second job in July 2023. Second jobs in natural resources, construction, and maintenance occupations (4.5 percent) were the least likely to be contingent. There was little difference in the contingent rates for other occupations; rates ranged from 10.6 percent in management, business, and financial operations occupations to 15.9 percent in professional and related occupations. (See table 4.) Of the 8.4 million multiple jobholders in July 2023, 186,000, or about 2 percent, were contingent on both their main and second jobs. (See tables 3 and 13.) Alternative Employment Arrangements on Sole or Main Job The July 2023 survey collected information on the number and characteristics of workers in four alternative employment arrangements--independent contractors, on-call workers, temporary help agency workers, and workers employed by contract firms. The characteristics of workers in alternative employment arrangements varied between the four arrangements. Independent Contractors (Sole or Main Job) Independent contractors (including independent consultants and freelance workers) were the largest of the four alternative work arrangements. In July 2023, 11.9 million people were independent contractors on their sole or main job, representing 7.4 percent of total employment. This estimate is higher than the 6.9 percent of workers who were independent contractors in May 2017. (See tables 5 and 5a.) The likelihood of being an independent contractor increases with age. Among workers age 55 and over, 11.5 percent were independent contractors on their sole or main job, compared with 6.9 percent of those ages 25 to 54 and 2.2 percent of those ages 16 to 24. Independent contractors are generally older than workers in other alternative and traditional arrangements. In July 2023, 36 percent of independent contractors were age 55 or older; by contrast, about 25 percent of workers in all of the other alternative arrangements and 22 percent of workers in traditional arrangements were in this age group. As in past surveys, men were more likely to be independent contractors than women (8.7 percent and 5.8 percent in July 2023, respectively). White workers (7.9 percent) and Hispanic or Latino workers (7.4 percent) were more likely to be independent contractors than Black workers (5.4 percent) and Asian workers (5.4 percent). Within each race and ethnicity group, men were more likely to be independent contractors than their female counterparts. Part-time workers were about two times more likely than full-time workers to be working as independent contractors (13.1 percent and 6.2 percent, respectively). However, 70.7 percent of independent contractors worked full time. (See tables 6 and 6a.) The likelihood of being an independent contractor was highest in the following occupations: arts, design, entertainment, sports, and media occupations (28.1 percent); personal care and service occupations (19.7 percent); construction and extraction occupations (15.1 percent); and building and grounds cleaning and maintenance occupations (13.2 percent). By industry, workers in real estate and rental and leasing (24.2 percent) and construction (18.5 percent) were among the most likely to be independent contractors. In July 2023, 84.6 percent of independent contractors on their sole or main jobs were self-employed. However, not all self-employed people were independent contractors--nearly two-thirds of the self-employed were independent contractors in July 2023. As in prior surveys, independent contractors overwhelmingly preferred their work arrangement (80.3 percent), whereas 8.3 percent would prefer a traditional work arrangement. The remainder expressed no clear preference. (See table 9.) In July 2023, 4.1 percent of workers who were independent contractors on their sole or main job were also contingent on that same job. (See table 12.) On-call Workers (Sole or Main Job) On-call workers are defined as those who report to work only when needed, although they can be scheduled to work for several days or weeks in a row. In July 2023, there were 2.8 million on-call workers, accounting for 1.7 percent of total employment--the same percentage as in May 2017. (See tables 5 and 5a.) The share of men who were on-call workers (1.9 percent) was slightly larger than the share of women (1.5 percent). Hispanic or Latino workers were more likely to work on-call (2.2 percent) than were White workers (1.7 percent), Black workers (1.5 percent), or Asian workers (1.3 percent). Among workers age 25 and older, those with less than a high school diploma were more likely to be on-call than those with a bachelor’s degree and higher (3.3 percent versus 1.2 percent). Part-time workers were two times more likely than full-time workers to work on-call (3.2 percent versus 1.4 percent). About one-third of on-call workers usually worked part time. (See tables 6 and 6a.) People working in protective service occupations (4.3 percent), in construction and extraction occupations (3.4 percent), and in healthcare practitioners and technical occupations (3.3 percent) on their sole or main jobs were among the most likely to be on-call. By major industry, on-call work was more common for those working in transportation and utilities (3.8 percent) on their sole or main jobs. In July 2023, 40.6 percent of on-call workers preferred to work in an on-call arrangement, about the same as the percentage who would prefer a traditional arrangement (41.6 percent). The remainder expressed no clear preference. (See table 9.) Among workers who were on-call on their sole or main job, 17.2 percent were also contingent on that same job. (See table 12.) Temporary Help Agency Workers (Sole or Main Job) In July 2023, 945,000 workers were paid by a temporary help agency on their sole or main job, representing 0.6 percent of total employment. This is down from 0.9 percent of workers in May 2017. Men and women were about equally likely to be temporary help agency workers on their sole or main jobs in July 2023 (0.5 percent and 0.6 percent, respectively). Black and Hispanic workers (1.0 percent and 1.1 percent, respectively) were more likely to work for temporary help agencies than White and Asian workers (0.5 percent and 0.6 percent, respectively). Among workers age 25 and older, those with less than a high school diploma were the most likely to work for a temporary help agency (1.2 percent). (See table 5.) Part-time workers were more likely to work for temporary help agencies (0.9 percent) than full-time workers (0.5 percent). About one-fourth of temporary help agency workers usually worked part time. (See tables 6 and 6a.) Among the major occupational groups, workers in production, transportation, and material moving occupations (1.2 percent) and in service occupations (0.7 percent) were the most likely to be temporary help agency workers. Within the service occupations group, 1.6 percent of workers in healthcare support occupations were temporary help agency workers. Among temporary help agency workers, the production, transportation, and material moving occupations group accounted for 1 in 4 workers. In July 2023, 48.2 percent of temporary help agency workers preferred their work arrangement, while 27.7 percent would prefer a traditional arrangement. The remainder expressed no clear preference. (See table 9.) Among people who were temporary help agency workers on their sole or main job, 54.8 percent were also contingent on that same job in July 2023. (See table 12.) Workers Provided by Contract Firms (Sole or Main Job) In July 2023, there were 862,000 workers provided by contract firms on their sole or main job, representing 0.5 percent of total employment, about the same percentage as in May 2017. These individuals work for companies that provide workers or their services to other organizations under contract, are usually assigned to one client at a time, and usually work at the client's place of business. Men were more likely than women to be contract company workers on their sole or main jobs (0.7 percent and 0.4 percent, respectively). Nearly two-thirds of contract company workers were men, compared with about half of workers in traditional arrangements. (See tables 5 and 5a.) Hispanic or Latino workers accounted for 1 in 4 workers provided by contract firms, compared with fewer than 1 in 5 workers in traditional arrangements. People working in natural resources, construction, and maintenance occupations (1.5 percent) and service occupations (0.9 percent) were more likely to be provided by contract firms than those in other major occupation groups. Within service occupations, the rates were highest for those in protective service occupations (2.5 percent) and healthcare support occupations (1.3 percent). Natural resources, construction, and maintenance occupations accounted for about 1 in 4 contract company workers, compared with fewer than 1 in 10 workers in traditional arrangements. (See tables 6 and 6a.) In July 2023, 22.5 percent of contract company workers on their sole or main job were also contingent on that same job. (See table 12.) Earnings and Health Insurance Coverage (Sole or Main Job) Among full-time workers, there was wide variation in the median earnings of those in alternative and traditional employment arrangements. In July 2023, median weekly earnings on the sole or main job were higher for full-time workers in traditional arrangements ($1,132) and on-call workers ($1,125) than for independent contractors ($949) and temporary help agency workers ($818). Contract company workers had median weekly earnings of $1,014. (See table 11.) Differences in earnings for workers in the four alternative arrangements reflect, in part, variations in the occupational distributions and the demographic characteristics of the workers. For example, temporary help agency workers are more likely to work in lower-paying production, transportation, and material moving occupations. Workers in alternative arrangements remained less likely than workers in traditional arrangements to have employer-provided health insurance on their sole or main job. In July 2023, 40.2 percent of contract company workers had employer-provided health insurance, compared with 38.1 percent of on-call workers and 16.6 percent of temporary help agency workers. In contrast, 54.4 percent of workers in traditional arrangements received health insurance through their employer. (Estimates of employer-provided health insurance are not presented for independent contractors because most of them are self-employed.) (See table 10.) Although most workers in alternative arrangements did not receive health insurance through their jobs, a large share had health insurance from some source, including coverage from another family member's policy, through a government program, or by purchasing it on their own. In July 2023, 84.9 percent of workers in traditional arrangements had health insurance from any source, a larger share than workers employed by contract companies (79.4 percent), on-call workers (78.2 percent), and independent contractors (74.2 percent). Temporary help agency workers were the least likely to have health insurance from any source, at 60.8 percent. Alternative Employment Arrangements on Second Job The July 2023 survey collected information from multiple jobholders about their second job and whether these second jobs were in any of the four alternative employment arrangements. Among the 8.4 million multiple jobholders in July 2023, the most common alternative arrangement on a second job was independent contractor. In July 2023, 1.9 million people were independent contractors on their second job, representing 22.8 percent of multiple jobholders. There were 348,000 multiple jobholders (4.2 percent) that were on-call workers on their second job, 118,000 workers (1.4 percent) were paid by a temporary help agency on their second job, and 26,000 multiple jobholders (0.3 percent) were workers provided by contract firms on their second job. (See tables 7 and 7a.)