Back in February I wrote a blog called Why Hiring a Contractor is Beneficial to Employers. While it’s beneficial to employers to hire a contractor vs. a full-time employee how does this affect those potential employees out there looking for full-time work?
First let’s quickly recap why employers are turning toward temporary and contract workers in the first place. The main reason for putting the kibosh on full-time positions—a hike in unemployment insurance taxes for employers, so in order to save some dough, employers are hiring temporary or contractors so they don’t have to pay for benefits.
While this is good for businesses trying to cut costs, this isn’t necessarily what
With an unemployment rate reported at around 10%, employers have their pick of employees and several potential employees feel like they’re being taken advantage of given the current economic circumstances. But the fact of it all is that employees will go where the work is and if the work is temporary or contract work that’s what they’ll take.
Unfortunately, the job market, according to the W.E. Upjohn Institute, may remain in favor of employers for the next decade or so due to the massive job loss and the weak economy, but you never know—new legislation may pass that could turn the tables. Until then, employers will find the loopholes and do what they can to cut costs too, after all they like us individuals are not unscathed by the economy.