A couple of generations ago, stable, full-time employment was the norm. And it was a pretty cozy arrangement: You found a good job at a solid company, worked there 40 years, then collected a gold watch and a full pension on your way out the door.

Today, the landscape is almost unrecognizably different. Part-time jobs have exploded in number. Job-hopping, rather than a career in one place, is the norm. Contract workers, gig workers, or freelancers now perform millions of jobs once filled by salaried employees. Understanding the nuances of these job types and their financial implications is crucial for anyone navigating this new economic reality.

These changes have helped companies become more efficient and stay competitive globally. Yet, they've been a mixed bag for workers. Wages have been stagnant for not just years but decades. According to Pew Research, today's hourly wage has the same purchasing power as in 1979, adjusting for inflation.

Meanwhile, the move from full-time salaried staff to part-time and contract workers has created large-scale income variability. Thanks to fundamental changes in the economy, millions of workers today must also find their own insurance and fund their own retirement.

Let's look at some jobs most commonly affected by this inexorable trend toward part-time and contract work.

Identifying Jobs with Variable Income

Variable income jobs span a wide range of industries and roles but share a common characteristic: earnings that fluctuate based on factors such as the amount of work available, the pay rate for individual projects, or the worker's ability to secure gigs. Examples include:

• Freelance Work - Writers, designers, developers, and consultants who work on a project-by-project basis.
• Gig Economy Jobs - Rideshare drivers, delivery workers, and other app-based roles where work is performed on an as-needed basis.
• Part-Time Positions - Roles in retail, hospitality, and other sectors where hours can vary significantly from week to week.

For some people, the flexibility offered by part-time work is ideal. Students, parents, and those with other commitments often find that part-time jobs allow them to balance their various responsibilities more effectively. However, the situation can be highly stressful for those attempting to replace a full-time income by piecing together several part-time gigs. Gig workers, for example, are not covered by minimum wage laws, overtime pay, or workplace safety regulations.

Part-time jobs, by their nature, often lead to income instability. Workers may have their hours cut during slow periods or be asked to work more during busy times, making it difficult to plan and budget. This unpredictability can create a self-reinforcing financial cycle that's hard to escape.

In addition to gig workers, two industries that rely heavily on part-time labor are restaurants and retail shops. Restaurant workers, in particular, face the added complexity of relying on tips to supplement their wages. Given the unpredictable nature of restaurant scheduling and the variability of tips, it can be challenging for these workers to maintain a stable income.

Retail workers also contend with problematic scheduling practices. The widespread use of on-call scheduling, where workers must be available for shifts but are not guaranteed any hours, reduces the number of guaranteed hours available and compromises their ability to plan their lives outside of work.

The Takeaway

The shift towards variable income jobs reflects broader changes in the global economy and workforce preferences. While these roles offer flexibility, they also require a more proactive financial planning and management approach. By staying informed, adaptable, and resourceful, workers can position themselves to thrive in an economy where variable income is increasingly the norm.