MIT Professor Emeritus Paul Osterman found that 35 percent of the American workforce—more than 55 million people—hold precarious positions with little security or upward mobility, according to reporting from MIT. The findings appear in Osterman's book, "Disposable Workers: The Transformation of Employment," published in August 2026 by Harvard University Press.
Osterman based his analysis on an original survey of over 6,000 workers. The study examines four distinct groups making up this 35 percent: marginal workers, contract labor, organizational freelancers, and platform gig workers.
Workforce breakdown
Marginal workers form the largest portion at roughly 17 percent of U.S. employees, representing about one in six jobs. These individuals work directly for an employer that does not intend to retain them or offer career advancement. Roles fitting this category span staff attorneys at law firms, adjunct faculty, and various part-time positions. Contract workers make up roughly 12 percent, often hired through staffing agencies and placed at varying sites. Organizational freelancers account for another 5 percent, while online platform gig workers make up slightly more than 1 percent.
Cost cutting and technology
Employers create these arrangements primarily to cut labor expenses and gain managerial flexibility, according to Osterman. By trimming long-term obligations, businesses reduce wage growth and benefit commitments. Osterman noted that while past economic research shows stable workforces often yield higher productivity, companies frequently choose lower labor costs over employee commitment.
Osterman also noted that artificial intelligence could accelerate this shift. Because AI introduces uncertainty for businesses regarding future staffing requirements, firms may increasingly choose disposable labor over permanent staff.
Reversing the trend faces structural limits, as only about 6 percent of U.S. employees belong to a union. Osterman pointed to nonunion advocacy campaigns, such as past efforts that secured $15 hourly minimum wages, along with customer pressure on corporate supply chains as practical tools to improve workplace standards.
