Why Are The Full Time Positions Disappearing?

Why are nine-to-five jobs in the traditional sense are forced back and why the entrepreneur-style employment or other atypical employment forms are spreading nowadays? The answer is very simple.

The environmental pollution of a given company can be considered as emission of harmful substances and as it is one of the production expenses. But the cost is not paid by the firm but the society in the form of low-quality water or air, lung cancer and others. The firm makes its expense exterior. This approach got into the main stream of economics thanks to Coase and Pigou’s works. It has become the main ideological basis of environment protection taxes.

To make expenses exterior is essential for every company. Not because the company leaders are wicked, although there may be some among them, but the logic of economic life dictates it. If the company is big enough and it is superior to its partners, it can make its expenses exterior more easily. A big commercial firm can collect shelf prize for example, and a part of the sales expense can be burdened on its suppliers. Really big factories can afford that they order for shorter period of time and smaller quantities from their suppliers at favourable prices. So the big company reduces its storage expenses and the supplier itself has to maintain a big warehouse because of this, to be able to satisfy a big (probably the only) customer’s changing demands.

The companies with one or two exceptions have bigger superiority nowhere but opposite their own employees. The companies have strong economic interest in getting rid of expenses related to traditional form of employment. Paid annual holiday, notice period, severance pay and of course the accessory costs are expenses that the companies shift to others with pleasure. Nobody can blame them because of this. Why should they do anything differently from the way what heir economic interest dictates.

All this implies that the labour market turns into a more flexible one. However, flexibility means that employees’ safety decreases. All this has social expenses just as environmental pollution. Stress, stomach-related diseases, indebted families getting into misery unexpectedly. Somebody has to bear expenses, there is no free lunch. Atypical employment forms are necessary, of course. Particularly we mean those forms that leave the employees’ employee rights, for example part-time employment. The safety of the traditional employment does not suit all employees because of its constraints. For the majority it would suit very well but it is not available for everybody after all.