| More People Becoming Full-Time Contract Workers Even In A Recovering Economy |
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BOSTON - Even with the net increase in employment so far this year, the corresponding rise in the unemployment rate to 9.9% and greater competition for jobs is causing more people to decide not to look for full-time work and to pursue careers as full-time freelance and contract employees, according to ClearRock, an outplacement and executive coaching firm headquartered in Boston. The job market is not expected to significantly improve over the next two years. The Obama Administration has forecast that the unemployment rate will be as high as 8.9% at the end of 2011 and 7.9% at the end of 2012 - only 2 percentage points lower than in April. The economy will have a difficult time keeping pace with new entrants to the labor force and those who are re-entering the job market after becoming discouraged. The contract labor force is growing twice as quickly as the traditional work force and is projected to comprise more than 35 percent of all employees by 2012, according to the U.S. Bureau of Labor Statistics. "More people who have been freelancing or working as contract employees during the downturn are now opting to do this full-time even in a recovering economy. Many have been laid off several times during their careers, and they do not want to go through that again," said Annie Stevens, managing partner with ClearRock. Added Greg Gostanian, managing partner with ClearRock: "Performing freelancing and contract work full-time is not a viable option for everyone. Many of those choosing to go this route were forced into becoming contingent workers when they lost their full-time jobs and there were no other suitable alternatives available. So, carefully examine whether becoming a full-time contract employee is right for you." ClearRock recommends these guidelines for evaluating whether full-time freelance or contract work is appropriate for you and for enhancing your success: - Gain the support of your family and significant others. "Full-time freelancing or contract work will require putting in more hours to line up work. Also, you will not receive health insurance, paid vacations, sick days, or other benefits usually given to full-time employees, and you may not have much career stability," said Stevens. - Update your career status with those who know your work best, and inform them about your decision to freelance full-time. "Reach out to former employers and networking contacts. Use social networking websites such as LinkedIn, Facebook and Twitter to notify others of your new career venture," said Gostanian. - Become comfortable with selling and marketing yourself and working alone. "You will need to continually market yourself to obtain work, and you will probably be working alone much more often than as an employee," said Stevens. - Distinguish yourself from others by specializing in only a few subject areas - those you know best and in which you can most successfully bid and compete for business. - Be prepared for potential financial rough spots and breaks between assignments. "Another mainstay of a regular job - getting a regular paycheck - also isn't assured," said Stevens. - Determine which tasks you can do yourself and for which other ones you will need outside help. Also familiarize yourself with applicable federal, state, and local laws regarding taxes, licenses, and permits. - Volunteer your services to a nonprofit, civic, or religious group to make business contacts and promote your enterprise. |