In the News
Vacation, Retirement Pay, Sick Days and Insurance | Unshred America
22 April 2014—Kevin Cahill, Center's Research Economist was mentioned on unshred.blogspot.com.
Four benefits an increasing number of Americans will never see again. They may be “contract workers” or “independent contractors” – paid to accomplish a particular temporary task – “temps” or “part-timers” or “independent workers.”...
And let’s face it, temp workers are definitely second class citizens. “‘When you’re just a contractor at a company … your ID badge is a different color. People treat you differently. They say they don’t, but they just do,’ [said one 54-year-old engineer forced into the temp world.]
More alarming to economists, long-term temps also miss out on the opportunity to develop a nest egg for a comfortable retirement… ‘It’s almost entirely the burden of the individual,’ said Kevin Cahill, a labor economist with the Sloan Center on Aging & Work at Boston College.
The potential hit to Social Security benefits is two-fold, he said. Since Social Security benefits are based on your earnings over your work history, both low-paying temp work or a gap in employment — a combination many of today’s ‘permatemps’ face — can drag down a worker’s future payments… These workers also may not have access to a corporate 401(k) plan. Even if they do, they might not be paid enough to be able to put any away for retirement. There’s certainly no employer match...