Why It Matters
The structure of American employment is shifting away from long-term stability toward flexible, low-cost labor arrangements that leave millions without career progression or benefits.
What Happened
A new analysis by a labor economist and author of “Disposable Workers: The Transformation of Employment” reveals that employers are increasingly relying on a workforce segment treated as expendable. As first reported by washingtonstatestandard.com, the findings stem from a nationally representative survey commissioned in late 2022, which included over 6,000 respondents.
The researcher also conducted nearly 100 interviews with workers, employers, and policymakers to understand the mechanics of this shift. The data indicates that more than one in three U.S. workers are classified as disposable, totaling just under 57 million individuals out of a national workforce of 162 million.
This category includes contractors employed by staffing firms, organizational freelancers, and marginal workers who lack job security or clear paths to advancement. The trend is evident across various sectors, including higher education and corporate legal departments, where traditional tenure tracks and partnership ladders are shrinking.
By the Numbers
57 million — Number of full- or part-time disposable workers in the U.S.
162 million — Total size of the nation’s workforce
13% — Share of workforce comprised of contractors employed by staffing firms
5% — Share of workforce identified as organizational freelancers
17% — Share of workforce classified as marginal workers
73% — Percentage of college and university teachers with tenure or tenure-track status in 1970
32% — Percentage of college and university teachers with tenure or tenure-track status in 2021
Nearly 20% — Wage gap between part-time and full-time workers, after controlling for demographics
5% — Additional compensation gap when benefits are factored in
88 — Number of low-wage employers interviewed by Susan Lambert’s team
2014 — Year the Affordable Care Act fully took effect
50+ — Minimum employee count triggering ACA health insurance mandates
30 hours/week — Threshold for ACA coverage requirements
$3,340 — ACA penalty per uninsured employee as of 2026
500,000 — Increase in part-time workers in retail, hotels, and restaurants post-ACA implementation
The Cost of Flexibility
Economic incentives drive the preference for disposable labor. Employers utilize these arrangements to reduce costs associated with mandatory benefits, such as Social Security contributions and health insurance. Part-time hourly wages are nearly 20% lower than full-time wages when controlling for age, education, occupation, and industry. This gap widens by an additional 5% when the value of benefits is considered.
The Affordable Care Act (ACA), which fully took effect in 2014, requires employers with 50 or more employees to provide health insurance or pay a penalty for workers employed fewer than 30 hours per week. As of 2026, that penalty stands at $3,340 per uninsured employee.
Data shows that the use of part-time workers increased by 500,000 in retail, hotels, and restaurants following the ACA’s implementation. Susan Lambert’s team interviewed 88 low-wage employers and found that many leverage part-time schedules for operational flexibility. One manager noted that high turnover among part-time staff provided sufficient staffing adjustments without needing temporary workers.
Zoom Out
The decline in job security extends to professional sectors traditionally associated with stability. In higher education, the proportion of tenured or tenure-track faculty dropped from 73% in 1970 to just 32% in 2021. Adjunct professors and contract faculty now make up a significant portion of instructional staff, lacking both job security and a path to permanent positions.
Similarly, in corporate law, staff attorneys are often hired as employees but remain outside the promotion ladder to partner status, facing limited career advancement opportunities. A 2023 McKinsey report highlighted a broader cultural issue, illustrating a lack of respect for front-line employee contributions within many organizations.
What’s Next
As labor markets continue to evolve, the reliance on disposable workers presents ongoing challenges for workforce stability and income equity. Policymakers and economists will likely monitor how these employment structures impact long-term economic mobility and social safety nets.