What are the Types of Employment? Meaning & Differences

Understanding the different types of employment is essential for both job seekers and employers. Employment types play an important role in determining job expectations, compensation, benefits and employment arrangements.

Whether you are an employer trying to create a flexible workforce or job seeker looking for a specific type of work arrangement, knowing the types can help guide your decisions and employment relationship efficiently.

What are the types of employment?

Employment refers to the legal agreement between an employer and an individual where the latter works for a set wage or salary. The employment contract specifies the conditions and nature of the job, such as work hours, job security, and benefits. Each type of employment is subject to specific employment laws that govern worker rights and employer obligations.

Real-time job posting salary data helps businesses and employees negotiate fair compensation by offering insight into job market trends and pay data.

Using Real-Time Job Posting Salary Data for employment

When exploring different types of employment, Salary.com's Real-time Job Posting Salary Data can provide invaluable insights. The tool aggregates job listings and salary data, allowing job seekers and employers to compare wages for various employment types. This data can help job seekers negotiate better pay and employers set competitive salaries.

Additionally, real-time salary data gives insight into the job market trends, highlighting industries or positions with high demand and competitive wages.

Types of employment

The type of employment you choose or offer significantly impacts job expectations, compensation, and career development. There are several key types of employment:

Full-time employment

Full-time employees typically work 35 to 40 hours per week. This type of employment usually comes with a set salary or hourly wage, along with benefits like health insurance, retirement plans, and paid leave. Full-time employment offers job security and long-term career growth, making it a popular option for individuals seeking stability.

Pros: Offers job security, stable income, and benefits such as health insurance and retirement plans.

Cons: Requires long working hours, reducing work-life balance, and can be inflexible.

According to the report, full-time employment remains the dominant form of work in the US. However, the report also highlights a growing trend towards part-time and temporary work arrangements.

Part-time employment

Part-time employees work fewer hours than full-time employees, often ranging from 10 to 30 hours per week. They may receive an hourly wage but often lack the full benefits package provided to full-time employees. Part-time work is ideal for individuals who need a flexible schedule, such as students, parents, or retirees.

Pros: Provides flexibility in scheduling, ideal for students or those balancing other commitments.

Cons: Often lacks benefits and career advancement opportunities.

Temporary employment

Temporary employees, also known as fixed-term employees, are hired for a specific period or project. Their employment can last from a few days to several months. Temporary workers are often hired through staffing agencies, and their roles can vary across industries. While they may not receive the same benefits as permanent employees, temporary employment can lead to full-time opportunities.

Pros: Allows workers to gain diverse experience and may lead to full-time roles.

Cons: Offers limited job security and typically lacks benefits.

Freelance/contract employment

Freelancers or independent contractors are self-employed individuals who work on a project-by-project basis for different clients. They have the flexibility to choose their working hours and rates. Freelancers may work in various fields, including writing, design, consulting, and programming. However, they do not receive traditional employee benefits, and they are responsible for their own taxes.

Pros: Provides autonomy over workload, clients, and working hours.

Cons: No guaranteed income or benefits, and taxes must be managed independently.

Seasonal employment

Seasonal employment is temporary work that arises during specific times of the year. Industries such as retail, hospitality, and agriculture often hire seasonal employees to meet increased demand during holidays, harvest seasons, or peak tourism periods. Seasonal workers generally work part-time or full-time for a short duration.

Pros: Offers short-term job opportunities during high-demand periods.

Cons: Employment is unstable, with no continuity beyond the season.

According to the report, the role of seasonal workers in the agriculture sector, highlighting the challenges they face and the importance of their contributions to the economy.

Casual employment

Casual employees or casual workers are hired on an as-needed basis, with no guarantee of regular hours. This type of employment offers flexibility for both the employer and the worker, but casual employees typically do not receive the benefits and job security provided to full-time workers.

Pros: Highly flexible, allowing workers to accept jobs as needed.

Cons: Lacks job security, consistent income, and benefits.

Internships

Internships provide individuals, typically students or recent graduates, with hands-on experience in a specific industry. Interns may work part-time or full-time for a set duration, usually with minimal or no compensation. Internships are often viewed as stepping stones to full-time employment, offering opportunities for skill development and networking.

Pros: Provides valuable industry experience, networking, and skill development.

Cons: Often unpaid or low-paying, with no guarantee of a full-time role.

Based on the survey report, the increasing value of internships for students, emphasizing their role in career preparation and job placement.

Salary.com’s Real-Time Job Posting Salary Data allows employers to benchmark salaries against industry standards and make informed decisions regarding pay structures. This insight is invaluable for creating competitive salary offers and attracting top talent across all employment categories.

Differences between employment types

The primary differences between employment types often revolve around hours worked, job security, and benefits. Here's how they vary:

Aspect	Full-time Employment	Part-time Employment	Temporary Employment	Freelance/Contract Employment	Seasonal Employment	Casual Employment
Hours Worked	35–40 hours per week	Fewer than 35 hours per week	Varies depending on the project	Varies by client/project	Varies by season and demand	No set hours, on an as-needed basis
Job Security	High, permanent role	Moderate, but less secure	Limited, depends on the project	Low, based on client demand	Temporary, lasts for a season	Low, employment not guaranteed
Benefits	Comprehensive (health, retirement, paid leave)	Limited or no benefits	Few or no benefits	No benefits, must self-manage taxes	Limited or no benefits	Few or no benefits
Flexibility	Low, fixed schedule	Moderate, flexible hours	Moderate, varies with project	High, flexible workload and hours	Moderate, based on season	High, flexible and irregular

FAQs

Here are the common questions about different types of employment:

What is the most common type of employment?

Full-time employment remains the most common type, especially in traditional industries like healthcare, education, and finance. It offers stability, benefits, and career advancement opportunities.

Salary.com’s Real-Time Job Posting Salary Data helps organizations to benchmark full-time salaries against real-time market data, ensuring they offer competitive wages to attract top talent.

Can part-time workers receive benefits?

Some part-time workers may receive limited benefits, depending on the employer. However, most part-time employees do not have access to the full benefits provided to full-time employees.

Is freelance work considered employment?

Freelance work is considered a form of self-employment. Freelancers are not employees but independent contractors who offer their services to clients.

How do temporary jobs differ from internships?

Temporary jobs are short-term positions that fill a specific need for an employer, while internships are typically learning opportunities for students or recent graduates seeking industry experience.