Variable Incomes vs Consistent Bills
Mission Accomplished: The Enslavement of America Work Force in 21st Century
Variable Incomes vs Consistent Bills
Nearly half of Americans can’t keep up with their expenses, and a major culprit is the burgeoning gig economy.
A study by Harvard and Princeton economists shows that 94 percent of "net job growth" from 2006-2017 was in "alternative work."
According to a new survey by the Center for Financial Services Innovation, 48 percent of Americans have expenses that equal or exceed their income. Among that group, nearly 45 percent have income that fluctuates from month to month.
Jennifer Tescher, president and CEO of the Center for Financial Services Innovation, said that since most labor market data evaluates average income over an annual basis, it overlooks the messy and complicated reality faced by independent workers trying to cover their monthly bills.
Other research has produced similar findings. A survey conducted last year by Bankrate.com found that roughly one in four Americans have no emergency savings. Inconsistent income is a contributor to American families’ inability to saving.
Freelance and contract work is by nature variable. It’s not a consistent paycheck, but our bills are consistent.
What’s more, studies have found that a growing segment of the American workforce is coping with this instability. According to business services firm MBO Partners, the number of people who work independently hit a record this year of 43 million. Financial software firm Intuit also reports an upward trajectory, estimating that the number of independent workers, which make up 38 percent of the workforce today, will rise to 56 percent by 2025.
This is by design, as companies search for ways to cut costs by spinning off jobs and then outsourcing to fill those positions, which lets them avoid having to offer health and retirement benefits and lets them add or drop workers on short notice.
The trend started with jobs like janitors and cafeteria workers, now has moved into professional services and other white-collar professions, encompassing everything from accountants to lawyers.
