Silicon Valley's Dingy Secret: Using A Shadow Workforce Of Contract Employees To Crusade Profits

From CNBC:

• This twelvemonth at Google, contract workers outnumbered straight employees for the get-go fourth dimension inwards the company's 20-year history.
• This tendency is on the rising every bit populace companies hold off for ways to bring down HR costs or hire in-demand skills inwards a tight project market.
• Some 57.3 1000000 Americans, or 36% of the workforce, are forthwith freelancing, reveals a 2017 study past times Upwork.
• Workers amongst jobs inwards higher reward are to a greater extent than probable to select their services contracted out than jobs associated amongst lower wages, according to a recent study.

As the gig economic scheme grows, the ratio of contract workers to regular employees inwards corporate America is shifting. Google, Facebook, Amazon, Uber too other Silicon Valley tech titans forthwith utilize thousands of contract workers to create a host of functions — anything from sales too writing code to managing teams too testing products. This twelvemonth at Google, contract workers outnumbered straight employees for the get-go fourth dimension inwards the company's 20-year history.

It's non but inwards Silicon Valley. The tendency is on the rising every bit populace companies hold off for ways to bring down HR costs or hire in-demand skills inwards a tight project market. The the U.S. of A. jobless charge per unit of measurement dropped to 3.7 per centum inwards September, the lowest since 1969, downwards from 3.9 per centum inwards August, according to the Bureau of Labor Statistics.

Some 57.3 1000000 Americans, or 36 per centum of the workforce, are forthwith freelancing, according to a 2017 study past times Upwork. In San Mateo too Santa Clara counties alone, in that place are an estimated 39,000 workers who are contracted to tech companies, according to ane approximate past times University of California Santa Cruz researchers.

Spokespersons at Facebook too Alphabet declined to let on the bring out of contract workers they employ. H5N1 spokesperson at Alphabet cited ii master copy reasons for hiring contract or temporary workers. One argue is when the companionship doesn't select or desire to laid out expertise inwards a item expanse such every bit doctors, nutrient service, client back upwards or shuttle omnibus drivers. Another argue is a require for temporary workers when in that place is a abrupt spike inwards workload or to comprehend for an employee who is on leave.

"At the halt of the day, TVC (temporary, vendor too contractual workers) are an of import component of the workforce, but they are non Google employees too non privy to the same confidential companionship data that full-time Googlers are," the spokesperson said.

"Our vendor workers are valued members of our Facebook community, too nosotros are committed to providing a safe, fair piece of work surround to everyone who helps Facebook select the basis together," said Anthony Harrison, managing director of media relations at Facebook. Spokespersons at Amazon too Netflix did non answer to requests for comment....MUCH MORE