Career consequences and financial implications
Precarious work has obvious financial implications. Almost all atypical employment can be characterised by short, mid, or long-term income unpredictability. Many irregular part-time employees have insecure income on a weekly basis. Self-employed workers and freelancers are often paid for a job which has an end to it while the next one is not guaranteed. Finally, temporary contracts can be characterised by long-term income insecurity as individuals may expect some periods of unemployment.
Precarious work may also have an impact on careers. Traditional careers are based on a linear model. Individuals work for a company within which they can progress; alternatively they move to another firm if a better opportunity arises. They can move vertically or horizontally, but the change is usually regarded as voluntary. Promotion within this model is also associated with either higher pay or a better status. Furthermore, there is an assumption that employers would be willing to invest in their regular employees by providing them with education or training. This can improve their workers’ skills and increase loyalty.
Such paths are often not available for precarious workers. This is especially the case in relation to people on ‘if and when’ contracts, which are now widespread in the hospitality and retail sectors. Regular increments are frequently not part of these contracts, while workplaces have a flat organizational structure, which makes it difficult to progress. Promotion can be capped at a supervisory level as employers prefer to offer managerial positions to college graduates, rather than to their ‘regular’ employees. An upwards movement also does not guarantee much higher hourly rate, although is likely to result in more security in terms of the hours. Those staying longer in these sectors may thus become trapped.
On the contrary, temporary contracts are associated with movement between different employments. Those advocating for a ‘boundaryless career’ model argue that moving between different employers benefits an individual. Ongoing fixed-term contracts, however, may result in a number of horizontal movements which have an involuntary character. This may be the case of those who move companies out of their own choice. A new job taken out of a necessity does not necessarily mean progression. This is especially an issue for high-skilled workers, who are supposed to build ‘a portfolio’ CV. Frequent moves with no strategy behind them may damage, rather than improve this ‘portfolio’.
Housing, family formation, and social relations
Buying a house may present a great difficulty for precarious workers. Financial institutions are usually hesitant to give a mortgage to individuals who are on atypical contracts, precisely due to the lack of security of their income. Saving for a deposit may also be of an issue for those with unpredictable income, especially if work only has a temporary character. Even if the earnings are high, additional resources may be needed for a period of unemployment. Spending this income on rents, which are currently very high, can also be problematic, or even impossible. Depending on the individual circumstances, precarious workers may not be able to afford a place on their own, and can be forced to either share with others, or live with their parents.
Financial constraints and housing issues may have a potential influence on relationships and family formation. Young workers, who cannot rent or buy places for themselves, are less likely to start a family. If they cannot predict their income, or their future place of work, they may be even less likely to plan to have a child. Relatively high childcare cost in Ireland is a further constraint. Furthermore, females in temporary employment may have difficulties in obtaining maternity leave simply due to the length of their contract. They may also fear being ‘pushed out’ of the labour market if they take time off work. All these can result in an involuntary delay in family formation.
Finally, precarity can have an impact on everyday social relationships. On a simplest level, irregular income may restrict an individual’s ability to spend money on socialising. Precarious workers are also often in a difficult position at work when compared to regular employees. If they change workplaces, work by themselves, or work on different shifts, then they do not have the same opportunities to establish social relationships at work.
The importance of individual circumstances and the national context.
These implications are not the same for all precarious workers, or atypical workers in general. The national context, including the cost of living or the social welfare system, is of a great importance. The current housing crisis in Ireland, combined with the high costs of living, can make it more difficult for precarious workers to survive, compared with the same workers in another European country. The impact of precarity may also vary depending on individual circumstances. In other words, precarious work will have different consequences for a single mother working irregular hours than those for a young college graduate living with his or her parents. Nevertheless they all have one thing in common: the lack of security and the inability to predict what their future will bring.
Dr Alicja Bobek is a Researcher at TASC