In the last couple of weeks, I’ve discussed the growing trend toward offering greater “flexibility” in all facets of employment, and also how demographic changes (fewer boomers, more millennials) are impacting the workforce. This week, let’s talk about why the trend toward freelancing and other non-traditional work relationships is here to stay.

Employers started using freelance labor long before the 2008 economic downturn.

In order to control costs, companies were already using the practice of “just-in-time inventory” –where, instead of holding inventory, only materials you know are actually needed get purchased — and extending that concept to labor, thus using “just-in-time” freelancers.

However, after the downturn, the trend to use freelancers accelerated because more displaced -yet qualified- people were willing to take freelance work than have absolutely no work while they found another job.  For many workers, whether unable to find work or because they preferred it, freelancing has become the new normal.

And their numbers continue to rise.  According to Forbes.com about one third of American workers (17 million) are “freelancers, contractors and consultants right now, and there will be more of them than full-time employees in six years.”

This prediction is difficult to believe, but there’s no doubt there are strong economic incentives for the trend to continue.  For starters, whenever possible employers prefer to replace retiring full-timers with freelancers who don’t get any benefits (like paid time off).

In the case of consultants who pay their own taxes, employers also save because they’re not required to pay those pesky taxes.  And because the pool of freelancers is now more specialized than ever, they also can now hire experts to complete specific projects –including hiring temporary CEO’s, CFO’s and other highly skilled troubleshooters– without making long-term commitments.

If the above prediction bears true (more freelancers than full-timers in six years) I’d find that troublesome.  I don’t think a workforce made up mostly of freelancers with unpredictable income makes for a strong economy.  I think we need the majority of workers to have stable employment otherwise, how will people pay for mortgages and send kids to college or do anything that requires steady, sustained, long-term investment? What do you think is a healthy percentage of freelancers?

© Copyright Eva Del Rio