Updated
Updated · MIT Sloan News · Jun 22
MIT's Osterman Says 35% of U.S. Workers Are Now Treated as Disposable
Updated
Updated · MIT Sloan News · Jun 22

MIT's Osterman Says 35% of U.S. Workers Are Now Treated as Disposable

1 articles · Updated · MIT Sloan News · Jun 22

Summary

  • More than one-third of U.S. workers fall into "disposable" arrangements, Paul Osterman argues in a forthcoming book based on survey data from over 6,000 civilian, nonagricultural adults.
  • Employers are expanding use of freelancers, contractors, part-timers and "marginal workers" because flexible staffing cuts long-term obligations amid profit pressure, weaker unions and new tools including AI.
  • Those workers typically get fewer benefits, less training, weaker job security and limited promotion paths, a shift Osterman says breaks from the post-World War II norm of mutual employer-employee loyalty.
  • Businesses also pay a price: Osterman says contractors and marginal workers report less commitment to organizational success and less willingness to put in extra effort, undermining quality and retention.
  • August 2026 is the planned release for "Disposable Workers," which argues the trend will be hard to reverse without outside pressure such as unionization, worker campaigns and state-level labor protections.

Insights

As AI automates millions of jobs, are we creating a permanent class of 'disposable' workers?
With half the workforce projected to be non-permanent, can companies maintain quality and innovation?
Is the traditional 9-to-5 job obsolete, and what new social contract should replace it?

35% of U.S. Workforce Now "Disposable": Paul Osterman’s Groundbreaking Analysis on the Transformation of Employment

Overview

Paul Osterman’s upcoming book, *Disposable Workers: The Transformation of Employment*, reveals that about 35% of the U.S. workforce is now treated as 'disposable.' Using government data and a large worker survey, Osterman shows how employers’ relentless cost-cutting has led to a rise in jobs with little security, few benefits, and minimal career growth. This shift creates a more fragmented and less empowered workforce, with serious consequences for worker well-being and even democratic principles. The report highlights how these changes are reshaping the labor landscape and calls for urgent attention to the issue.

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