MIT Economist: 35% of U.S. Workforce in 'Disposable' Employment Arrangements, AI Set to Accelerate Trend

NewsData.io · United States · Aug 23, 2026

MIT labor economist Paul Osterman estimates that over 55 million U.S. workers — more than 35% of the workforce — are in disposable employment arrangements, including contractors, freelancers, and marginal employees with limited job security or advancement prospects. Osterman argues employers are increasingly prioritizing flexibility and lower labor costs over long-term workforce investment, eroding employee loyalty in the process. AI is expected to deepen this shift, as uncertainty about future skill needs drives companies to rely on easily replaceable workers; Deloitte data cited in the piece shows 82% of surveyed firms expect at least 10% of jobs fully automated within three years. For staffing firms, the trend signals continued structural demand for contingent and flexible labor arrangements, while also highlighting growing pressure on clients to rethink how they classify and develop their workforces.