Four in 10 companies are hiring contractors to replace laid-off workers, according to a survey by ResumeBuilder. According to the report, 57% of business leaders surveyed say they have had layoffs in the past three months, while 56% plan to have layoffs in the coming six months.
“Although many companies had or anticipated downsizing, 37% are currently hiring contractors,” the report states. “Out of these companies, 78% say they are hiring for more contract positions now compared to previous years, and 71% say they are hiring contractors to save money.”
In addition, for companies that experienced layoffs in the past three months and are currently hiring contractors, 80% reported that contract workers carry out responsibilities previously assigned to laid-off employees.
The report found that in the past three months, 53% of business leaders moved full-time employees to contract positions. Meanwhile, 37% asked employees to move from full-time to part-time. Within the next six months, 52% of business leaders anticipate that full-time employees will move to contract positions, while 40% anticipate that employees will move from full-time to part-time.
ResumeBuilder analyzed responses from 1,000 business leaders at companies with at least 50 employees.