In . . . → Read More: International Working Patterns, Part II: Working Outside the Box]]> The previous article in this series highlighted the variations in hours of work between different countries and the factors which influence these. This article examines international differences in the extent and composition of non-standard employment, such as part-time and temporary work and fixed-term contracts, and explores some of the reasons for these differences.

In the 1980s and 1990s, nearly all developed countries experienced significant increases in the proportion of total employment accounted for by non-standard jobs, with the main growth accounted for by part-time work and temporary work. For example, over half of all new jobs created in Europe between 1987 and 1997 were part-time, as were a substantial proportion of new jobs in countries such as the U.S., Canada and Japan. By the mid-1990s, just over a third of all employment in the UK and the U.S., more than 40% of employment in the Netherlands and nearly half of all employment in Australia and Japan consisted of non-standard work. Self-employment and shift-work are usually included in official definitions of non-standard working, but these categories have not contributed significantly to the recent expansion in non-standard work.

New Trends

Across OECD (Organisation for Economic Co-operation and Development) countries as a whole, part-time work continued to expand by 7% between 1993 and 2006 but with considerable variations between countries in the rate of growth and the extent of part-time working. In 2006 the OECD countries with the highest rates of part-time work, accounting for around a quarter or more of all jobs, were Australia, Japan, the UK, Israel, the Netherlands and Switzerland, while countries such as Turkey, Korea and most Eastern European countries had less than 10% of their workers in part-time jobs. Most western and southern European countries, as well as the U.S. and Canada, had fairly high rates of part-time working in 2006, generally 16% or more of total employment.

Temporary work also expanded in many OECD countries in the 1980s and 1990s, again with considerable variations between countries in both the growth rate and the proportion of the workforce consisting of temporary workers. By 2000, Spain had the highest proportion of temporary work, accounting for a third of all jobs in that country, while a number of other nations including the U.S. and the UK had only around a tenth of all workers in temporary jobs. This category of non-standard employment includes a very diverse range of workers including, for example, agency temps employed in industrial or office work, seasonal agricultural workers and professionals on fixed-term contracts.

Need for Flexibility

The major expansion of non-standard employment in recent decades has been linked to the need for greater flexibility in human resource practices in order to improve the productivity and competitiveness of firms, particularly in conditions of economic recession, which has encouraged employers to create part-time, fixed-term or temporary jobs rather than traditional full-time permanent jobs. At the same time, there is a demand among many workers for non-standard forms of employment which enable them to combine paid employment with other commitments such as looking after a family or studying. Some workers are pushed into non-standard jobs because they are unable to obtain full-time permanent work, but OECD statistics indicate that the majority of part-time workers, at least, choose to work part-time. Overall, women account for the majority of non-standard workers in most countries, usually well over half of all part-time workers and at least half of all temporary employees.

Non-standard work in many countries has traditionally meant inferior terms and conditions of employment, with non-standard workers often being paid lower average hourly rates than their full-time, permanent counterparts and receiving fewer benefits such as pensions and health insurance. Ironically, those countries with strong employment protection legislation, such as Germany, France and Japan, have experienced expansions in non-standard forms of employment which are not covered by the legislation. On the other hand, the rapid expansion of Japan’s part-time work sector has been boosted by tax benefits offered to women whose earnings remain below a certain level. In Europe, the employment conditions of non-standard workers are now being addressed by EU initiatives such as the Framework Agreement on Part-Time Work as well as the proposed Agency Workers Directive still being discussed by the European Council. It remains to be seen whether improved employment protection for temporary and part-time workers will affect the supply of such jobs since the benefits to employers in terms of reduced costs and increased flexibility may be reduced. A counteracting factor may be the demographic changes that will increasingly reduce the available labor pool in many countries, putting pressure on employers to create high quality non-standard jobs to attract those workers looking for more flexibility in their own employment arrangements.