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This is a long and very good post by Alex Evans, whose main concern is the voluntary and charity sector (VCS). Although he goes on to give a potted history of the Black Death and feudalism, as well as outlining the promise of universal basic income, it’s his analysis of what’s happening with freelancers and the diminishing middle class in the UK which interests me.

Pre-pandemic, and pre-Brexit things were much better. Every time I meet up with people who are freelancers, part of worker co-ops, etc. the conversation quickly turns to the same thing: what’s going on? I’ve variously blamed: AI, the number of elections in 2024, over-hiring during the pandemic, Brexit, and the super-rich hoarding money.

The truth is, it’s probably all of those things and more. But I think that Evans is correct to say that the VCS is the canary in the coalmine for the next recession. 2025 has been terrible but let’s hope that next year isn’t even worse…

What we’re watching in the voluntary sector mirrors patterns across the wider economy: the disappearance of mid-level roles, the rise of short-term contracts, and the quiet normalisation of insecurity as the price of ‘flexibility’. As ever, I’m not so interested in the ‘inside baseball’ trade talk. I’m much more interested in how this maps to wider changes in our society, economy, and culture. For some time, there has been a hollowing out of middle incomes in the West - people in clerical, skilled manufacturing jobs. In the VCS this seems to be expanding further up the tree and into senior roles. I think we are canaries in the mineshaft of the next recession (or even crash) likely to engulf the wider economy before long.

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[T]here’s always a danger that we welcome a new flexibility without noticing that much of this is a result of massive sector contraction. Some people are finding that there is no longer an alternative, as restricted funding, refusal to pay for management costs, and wider cuts risk creating a new precariat where managers/ specialists used to have job security. Others - especially fundraisers & CEOs - are fleeing toxic burnout cultures.

[…]

The new precarious middle classes have been the subject of concern for commentators and economists for some time. And it is likely that this sense of increased anxiety and middle class precarity adds to the rise of voting for right wing parties in groups who might normally find them rather too déclassé. When you lose a property owning middle class, more and more of that wealth is sucked up to the super-wealthy. Economists and popular economic commentators like Gary Stevenson have warned about the hollowing out of the middle classes, as resources get siphoned out of the working and middle classes and into an ever-increasing share of wealth for the super-wealthy, whether corporate or individual.

[…]

A recent study by the OECD shows that the middle classes, faced with stagnant incomes and rising costs, are becoming less able to save and falling into debt. We also know that home ownership is becoming less and less likely for even middle class households. Of course the ‘middle class’ is constantly shifting, and has many nooks and crannies, and levels of wealth, autonomy, power and privilege. Where it begins and ends is a constant source of debate and discussion. And many would point out that most of the people who we describe as ‘middle class’ in the UK are in actual fact, much like in the US, really ‘working class’. They may have the trappings of respectability, perhaps some savings, may (decreasingly) own their own home, or may have been to university, but as the OECD points out, all of those things are being erased. We’re seeing downward social mobility over the generations (I’ve seen this in my own family). And the fundamental of having to sell labour to those who extract profit is an economic characteristic of most ‘middle class’ experiences, until we reach the upper limits where we may find those who have invested in property, or enjoy some level of hereditary wealth.

Source: Barely Civil Society

Image: Vitaly Gariev