Flexibility never meant disrespect: Why the freelance dream is backfiring in America. Is the UK next?
MIT Sloan research spearheaded by Professor Paul Osterman reveals a staggering reality: 35% of the US workforce is now deemed “disposable.” In a bid to boost short-term profits and slash headcount liabilities, companies are rewriting the rules of employment. It raises a sobering question. Is our hard-won freelance flexibility actually backfiring on us?
It’s official. Freelancers and independent contractors have become the “fast fashion” of the working world. A third of US workers are trendy and entirely disposable.
In his book Disposable Workers, MIT Sloan Professor Emeritus Paul Osterman pulls back the curtain on a dangerous corporate trend. Employers are misinterpreting our hard-won flexibility as complacency. Because they think we are just casually getting by, companies have developed a blatant disrespect for our time and financial stability. The proof is in your inbox: it’s why clients think nothing of ghosting you or delaying your invoices for months.
This isn’t just a streak of bad luck. Drawing from a massive survey of 6,000 workers, Osterman proves that unstable work is no longer confined to rideshare drivers. It is a calculated, structural strategy rewriting the rules of the modern economy. If you freelance, you need to understand the game being played against you.
35% of the US workforce is “disposable”
The headline finding, as outlined in the MIT Sloan Ideas Made to Matter analysis, is staggering: roughly 35% of the adult US workforce falls into the disposable category. This trend spans the entire occupational ladder, from blue-collar service staff to highly credentialed white-collar professionals. Osterman breaks these workers into three distinct groups:
- Contractors: Individuals hired through third-party agencies to perform specific, time-bound tasks.
- Freelancers: Independent professionals brought in on a project-by-project basis.
- Marginal employees: This is Osterman’s unique contribution. These are technically standard W-2 employees on paper, but they are held at arm’s length by their companies. They have high turnover built into their roles and are entirely excluded from career ladders, skill training, and job stability. Examples include adjunct professors and staff attorneys at large firms.
Profit over permanence
This systemic change isn’t accidental; it is driven by deliberate corporate strategies and business incentives.
- Market pressures: Financial markets place immense pressure on firms to maximise short-term profits and shrink headcount liabilities
- Eroding norms: The post-WWII social contract defined by mutual loyalty, steady promotions, and healthcare benefits has degraded. Weakened unions and shifting workplace norms have lowered the barriers to what employers feel they can legally and socially get away with
- The AI accelerator: While this trend heavily predates artificial intelligence, Osterman notes that AI introduces massive uncertainty about future labour needs. To hedge their risks, employers are becoming even more reluctant to hire standard, permanent staff, preferring instead to scale their workforces up or down dynamically
Backfired: Why flexibility comes at a cost
Companies optimise for flexibility. However, Osterman’s data shows they pay a hidden price for it.
The strategy of making a firm agile can also leave it weak. His survey shows “disposable” workers rarely care about long-term success. They seldom go the extra mile.
Research proves quality rises when workers feel committed. By stripping away security, companies sacrifice the team spirit that drives performance.
Yet, The Freelance Informer notes a flaw in this blanket finding. For true freelancers, reputation is everything. To secure future referrals, many actively choose to over-deliver.
Their drive comes from professional pride and business survival, not corporate loyalty. Of course, once a project ends, their strategic involvement stops.
This highlights a misunderstanding of modern flexibility. Did a freelancer build lasting systems that boost profits? Then they demonstrated deep commitment.
The drop in long-term performance isn’t a worker failure. It is a corporate design flaw. Companies simply fail to retain vital know-how once a contract ends.
The American Dream is under threat
These findings paint a sobering picture of a growing economic divide. Companies are replacing stable, upwardly mobile roles with marginalised jobs. By stripping away career development, the path to the American Dream is being squeezed out. Over a third of the population is now trapped in constant professional insecurity. This reality creates deep societal instability and worsens economic inequality.
Does flexibility have to lead to vulnerability? No.
Osterman argues that while businesses naturally seek agility, workers shouldn’t pay the ultimate price. His book calls for urgent policy reforms. He calls for tighter regulations on corporate contracting and stronger protections for freelancers. This ensures a baseline of human dignity.
Over in the UK, there are signs of positive policy change on the horizon in terms of freelancer payment time frames. Yet, other challenges remain, with many freelancers falling victim to recruitment ghosting.
However, policy is only half the battle. True change requires human and professional decency within corporate culture. When organisations bake empathy into their DNA, they naturally win the commitment of their talent. Loyalty returns, whether workers are permanent or freelance. Ultimately, treating people well proves that productivity and profitability never have to suffer.
