Americans Are Lining Up To Work For Amazon For $15 an Hour

Analysts had worried Amazon’s wage increase would cut into its profits. So far that doesn’t seem to be the case. Amazon reported $3 billion in profit for the fourth quarter.

Silicon Valley’s dirty secret: Using a shadow workforce of contract employees to drive profits

As the gig economy grows, the ratio of contract workers to regular employees in corporate America is shifting. Google, Facebook, Amazon, Uber and other Silicon Valley tech titans now employ thousands of contract workers to do a host of functions — anything from sales and writing code to managing teams and testing products. This year at Google, contract workers outnumbered direct employees for the first time in the company’s 20-year history.

It’s not only in Silicon Valley. The trend is on the rise as public companies look for ways to trim HR costs or hire in-demand skills in a tight labor market. The U.S. jobless rate dropped to 3.7 percent in September, the lowest since 1969, down from 3.9 percent in August, according to the Bureau of Labor Statistics.

Some 57.3 million Americans, or 36 percent of the workforce, are now freelancing, according to a 2017 report by Upwork. In San Mateo and Santa Clara counties alone, there are an estimated 39,000 workers who are contracted to tech companies, according to one estimate by University of California Santa Cruz researchers.

Spokespersons at Facebook and Alphabet declined to disclose the number of contract workers they employ. A spokesperson at Alphabet cited two main reasons for hiring contract or temporary workers. One reason is when the company doesn’t have or want to build out expertise in a particular area such as doctors, food service, customer support or shuttle bus drivers. Another reason is a need for temporary workers when there is a sudden spike in workload or to cover for an employee who is on leave.

Who Pays the Price? The Human Cost of Electronics

“This short video reveals the hazards of the electronics industry in China profiling workers poisoned by chemicals and their struggle for compensation.

Thousands of young people in China enter export factories to make the West’s favorite electronic gadgets, only to find they have contracted occupational diseases or worse, leukemia, by the age of 25.”