MIT Researcher: 35% of U.S. Workers Are Now 'Disposable' — and AI Is Accelerating the Trend

NewsData.io · United States · Sep 5, 2026

MIT Sloan Professor Emeritus Paul Osterman, drawing on a nationally representative survey of 6,000+ workers, finds that 35% of the American workforce now falls into 'disposable' categories — contractors, freelancers, and marginal employees. His new book argues that companies increasingly prefer non-employee arrangements to avoid benefits costs, gain flexibility, and reduce obligations, with AI uncertainty further strengthening that appetite. For staffing firms, the research highlights both the scale of the contingent labor market and the regulatory risks ahead, including potential federal adoption of the ABC test for employee classification. The analysis also flags real operational consequences of heavy contractor use, including lower worker engagement and elevated safety and infection risks.