New Survey Shows Uptick in Contingent Employment

More employees and companies are taking advantage of contingent labor, according to the U.S. Bureau of Labor Statistics (BLS). 

The agency released its new contingent employment statistics on Nov. 8, 2024, revealing a total of 6.9 million workers in the United States – or 4.3% of the workforce – reported holding a contingent position as their main job. The findings are based on a survey conducted in July 2023.

These latest statistics reveal an uptick in contingent work over the last six years. The last time the survey was conducted, in May 2017, only 3.8% of workers reported holding contingent jobs.

To understand what this means for the U.S. workforce, let’s take a closer look at what the data says.

A Closer Look at the Contingent Workforce

In addition to the statistics that reveal how many contingent workers there are overall in the U.S., the new report dives deeper into who exactly makes up the contingent workforce.

What is Contingent Labor?

First, we should explain what contingent labor means. The survey sent out defines a contingent job as one that employees don’t expect to last. These roles are temporary, where workers don’t have a contract for ongoing employment. 

It’s important to note, however, that jobs are not considered contingent if they’re temporary due to personal reasons – like an employee retiring or leaving work to return to school.

Who are Contingent Workers?

As we mentioned, the new statistics tell us that 4.3% of the workforce in the U.S. is contingent. But who exactly makes up that percentage by demographic?

By Age

The survey found that the contingent workforce skews younger. According to the BLS, workers between the ages of 16 and 24 are four times more likely to have a contingent job than those 25 and older. 

The survey revealed the following contingent work rates by age:

• Workers Age 16-24: 12.9%
• Workers Age 25-54: 3.1%
• Workers Age 55+: 2.6%

Men vs. Women

Men and women hold contingent jobs at almost the same rate, according to the survey findings. Men reported holding contingent jobs at 4.3% while women were at 4.2%. 

For both men and women, workers in the youngest age group (16-24) hold contingent jobs at the highest rate. Men in that age range reported a 13.3% contingent rate while women reported a slightly lower 12.5%.

Race & Ethnicity

The survey also provides insights into the race and ethnicity of the contingent workforce. The results show that Asian and Hispanic or Latino workers are more likely to be contingent than white or Black workers.

• White Workers: 4.1%
  • White Men: 4.1%
  • White Women: 4.0%
• Black Workers: 3.9%
  • Black Men: 4.5%
  • Black Women: 3.3%
• Asian Workers: 5.9%
  • Asian Men: 5.7%
  • Asian Women: 6.2%
• Hispanic/Latino Workers: 6%
  • Hispanic Men: 6.6%
  • Hispanic Women: 5.2%

Education

According to the BLS, workers enrolled in school are much more likely to be in a contingent position than those who are not enrolled. Workers aged 16 to 54 who were in school reported a 15.5% contingent rate, compared to 4% reported by workers not in school.

The data also sheds light on the education level of workers 25 and older who reported holding a contingent job:

• Less Than a High School Diploma: 7.1%
• High School Graduate With No College: 2.7%
• Some College/Associate Degree: 2.2%
• Bachelor’s Degree or Higher: 3%

Industries & Occupations With Contingent Workers

The new BLS survey also collected information on the industries and occupations with the most contingent workers.

By Industry

Agriculture and related industries have the highest rate of contingent labor, according to the survey findings, followed by the leisure and hospitality industry.

• Agriculture and Related: 10.4%
• Leisure and Hospitality 7.7%
  • Arts, Entertainment, and Recreation: 14.1%

By Occupation

The findings show the highest rate of contingent work in natural resources, construction, and maintenance jobs, closely followed by service jobs. The lowest was in management, business, and financial occupations.

• Natural Resources, Construction, and Maintenance: 6.5% 
  • Farming, Fishing, and Forestry: 17.9%
  • Construction and Extraction: 7.4
• Service: 6.1%
  • Personal Care and Service: 9.3%
  • Protective Service: 5.6%
  • Healthcare Support: 4.2%
• Management, Professional, and Related Occupations: 3.6%
  • Management, Business, and Financial: 2.1%

By Job Type

The BLS noted in its update that part-time workers are about three times more likely to hold a contingent job than full-time workers. 

• Part-Time Work: 9.7%
• Full-Time Work: 3.2%

Second Jobs

According to the BLS, 5% of employed Americans hold multiple jobs. Of those multiple jobholders, 1.1 million people – or 12.8% – have a second job that’s contingent. Approximately 2% of people with multiple jobs reported they were contingent in both their main and secondary jobs. 

What This Means for the Labor Market

According to the survey results, 40.8% of contingent workers preferred their arrangement with temporary work, while 44.8% would prefer a permanent job for their main role. Other workers didn’t have a preference.

These percentages, in addition to the rest of the survey findings, not only give us a better understanding of the current contingent workforce but also reveal a heightened interest and reliance on contingent labor.

“As businesses navigate an increasingly dynamic labor market, the rise in contingent employment provides both companies and workers with new opportunities and flexibility. The latest data from the BLS highlights how more Americans are embracing contingent roles, whether by choice or out of necessity. This shift allows organizations to address talent shortages, scale operations quickly, and access specialized skill sets. For businesses, contingent staffing has become an essential strategy to remain agile and resilient in today’s ever-evolving economic landscape.” — Acara Solutions President Brian Christel

Start Taking Advantage of Contingent Labor

It’s clear, based on this new data, that the U.S. workforce is shifting, and the role of contingent work will continue to evolve in the coming years.

With the recent uptick in contingent employment, and more Americans showing interest in contingent roles, now is the time to explore this as an option for your business.

If you haven’t used contingent labor before, there are plenty of reasons you should. Contingent staffing is a highly customizable solution that allows you to fill talent gaps and add specific skills to your workforce that you may be missing. 

Hiring contingent workers lets you work with employees on a trial basis, allowing you to assess their skills and fit with the company’s culture. If a contingent employee is a good match, you can hire them full-time.

Using contingent workers, and working with a contingent staffing partner, also saves you time and money because your provider will handle administrative tasks like onboarding and payroll.

Ready to Get Started? We’re Here to Help!

If you’re ready to take advantage of contingent staffing, Acara Solutions is here to help. We source thousands of contingent labor candidates annually, connecting companies with highly qualified workers. 

At Acara, we don’t just fill positions. We focus on finding the right people for you. Our experts will work closely with you to assess your unique challenges, understand your culture, and identify skill gaps so we can connect you with contingent workers who will help you reach your full potential.

Learn more about our contingent workforce solutions or contact us to see how we can support your staffing needs.