The economy lost another 190,000 jobs last month sending unemployment to 10.2 percent -- the first double digits since 1983.
But a new and growing trend may be even more important: a whopping one third of all workers, according to the General Accounting Office, are now freelance-- meaning that they are not formally working for a company and no longer have the safety net of unemployment insurance.
Sara Horowitz is trying to protect this large group of workers in a freelancer's union, providing health, dental, disability and life insurance, a 401(k) retirement plan, and lobbying to make laws more freelancer-friendly. The union's organizing campaign has already signed up 175,000 members to create a "new deal" for the new insecurity of work.
In this report, NewsHour Economics Correspondent Paul Solman talks to freelance organizers and workers about why they have made the choices they have, and how they plan to survive in the down turn.
Quotes
"Some people used to think, you know, freelancer, it's a euphemism for people unemployed. But, actually, it is really all of us. It's people that work in technology, in finance, in real estate, in -- domestic workers, graphic designers, artists. It's across the whole economic spectrum. And it is in fact a third of the work force is now working like this." Sara Horowitz, Founder, Freelancers Union
"I would love to have, you know, medical benefits, insurance, dental, disability. All of that is wonderful. However, many times, I have actually given up terrific jobs with all those wonderful benefits simply because I wanted to, you know, change -- change the environment, try different things." Carlos Giron, Public Relations Consultant
"I hate having to have been extremely successful and then having to make so much less. I think, psychologically, that is what is hardest for people. I hate making less money. I can't stand it." Cecilia Smith, Musician
Warm Up Questions
1. What are benefits that come from full time employment?
2. Why might someone want to work for his or her self?
Discussion Questions
1. Does it surprise you that so many people are freelance workers? Why or why not?
2. List some of the pros and cons of freelance work. What would you do if you were a freelancer?
3. Do you think that you would want to freelance? Why or why not?
4. Name some jobs that could never be freelance and explain why.
Additional Resources