I think we all know someone that has worked on ‘an assignment’ or did ‘project’ or a ‘gig’. There are tons of people working in different capacities at companies that are not on internal payroll. And these workers have many terms, such as; temps, contract, leased, independent contractors or contingent workers. Whatever they are called they’re an important variable in corporations not just in the U.S. but around the world.
Contingent Worker Defined
By design, contingent workers are not on your company’s internal payroll and not employees. Contingent workers are temps, contractors, freelancers, and consultants, that work alongside your company’s internal employees. The United States Department of Labor (DOL) defines a temporary employee as someone hired to work for one year (1000 hours) or less with a specific end date. And there are variables to this ruling as well.
Global Market Share
The U.S. has the largest part of the global contingent workforce in the world. It’s estimated by Staffing Industry Analysis (SIA) that there were 33 million contingent workers in the US in 2021, generating over $1.7 trillion in revenue. The Global contingent workforce market in 2021 was over $171,531 billion and is projected to reach $465,192 billion by 2031. Overall, 15 countries comprised 88% of the global market share with Japan, Germany, France, and the UK accounting for most of the revenue.
Good to Know
A report by MBO Partners which surveyed 504 senior decision makers in large corporations on their use of contingent workers, found:
- Contingent labor makes up 28% of a large company’s workforce
- 67% of corporations expect their use of contingent workers to increase over the next 18 months from August 2022, with only 5% pulling back in their usage.
- Over the next five years, 80% of the corporations expect their use of contingent labor to increase.
Trending Upward
The contingent workforce in the U.S. has been on an upward trend since 2020. So much so, that according to a US Government Accountability Report, by 2050 – 50% of the US workforce is estimated to be made up of contingent workers.
Staffing agency activities within this workforce remains at record levels throughout the U.S. The contingent workforce is a vital part of the U.S. economy and as surveys predict, will remain so for many years to come.
Cardinal Staffing Services – Your Staffing Partner
Whether you are a company looking for employees OR a candidate looking for work we have you covered. For more details, reach out to your local Cardinal Staffing office to hear more about current offerings or for job postings – we’re here to help!
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