Temporary Employment – Is This the Future of Work?

A recent figure has caused a lot of ink to flow: Google has more temporary employees than permanent employees. We take a look at what is on the horizon with regard to temporary employment.

According to the most recent data from Statistics Canada, temporary employment (generally part-time positions obtained through an employment agency) has been on the rise in Canada over that last two decades. And although temporary employees still make up a small share of all Canadian employees, their numbers are growing faster than permanent employees. This upward trend is also found in the United States.

Google, Wonolo and co.
The American giant Google is an excellent example of this phenomenon since in May 2019 it had 121,000 temporary employees compared to 102,000 permanent employees. These figures support many studies showing that in the United States almost all employment growth between 2005 and 2015 came from temporary, contract or freelance jobs. What’s more, an increasing number of these jobs are filled through companies such as Wonolo and Work Genius, which, through their automated recruitment system, competes with traditional recruitment agencies. In effect, their algorithms help companies hire temporary employees who are available the same day. These employees can be dismissed just as easily, it goes without saying.

Benefits for employers
By being able to quickly meet their labour needs, companies obviously find many benefits in temporary employees. In addition, they save money on benefits and wages. Moreover, according to Statistics Canada, temporary employment is often (not always!) associated with fewer possibilities for unionization, training and benefits (employment insurance, pension plan, vacations, etc.), as well as lower wages. For example, in 2018, Canadian temporary employees were paid less per hour ($21.80) than permanent employees ($27.71). This was in addition to working an average of 5 hours less per week!

Benefits for employees
That said, temporary employment also has benefits for employees. It offers more flexibility (e.g. variable hours), as well as acquisition of a wide range of experience, skills and knowledge (an asset, at present, on the job market). In addition, a temporary job can in some cases lead to a full-time job. It should also be noted that some employers compensate for the absence of benefits by providing better pay.

So whether you are a supporter or critic of temporary employment, one thing is certain: it is now part of the professional landscape.

[CC1]https://www150.statcan.gc.ca/n1/daily-quotidien/190514/dq190514b-fra.htm