In an MIT news report dated Aug. 18, 2026, MIT Professor Emeritus Paul Osterman describes "marginal workers" — employees an organization does not intend to keep and who have no career prospects there. His book, "Disposable Workers: The Transformation of Employment," argues these workers belong to a broader shift toward disposable labor. Drawing on an original survey of over 6,000 workers, Osterman estimates about 17 percent of US employees are marginal workers and roughly 12 percent are contract workers. Another 5 percent are organizational freelancers, including gig workers at a little more than 1 percent of the workforce. Overall, he estimates 35 percent of US workers — over 55 million people — fall into these categories.

Osterman attributes the trend to firms controlling labor costs while seeking flexibility and managerial discretion, leaving fewer workers with promotion prospects, health benefits and stability. He says firms appear aware that short-term savings may reduce commitment and productivity but still accept the tradeoff, and he notes the evidence on that question is debated. Osterman expects AI-related uncertainty could increase use of disposable workers, though he stresses the book is not about AI. He also says only about 6 percent of US employees are unionized, and points to advocacy groups and customer pressure as other tools.