The excerpt below explains why companies aren't hiring. They've gotten people to the point of working for free--exploitation gone as far as it can go. Presumably, they will cycle through the free workers. That is, the folks working for free will take on lots of credit card debt to get them through, hoping they will get a paid job. A few will. Some will get temp work. Some will take on second and third jobs. It doesn't matter to Capital--free labor is good enough. Who cares about the law? (Actually, last night I heard a Silicon Valley entrepreneur say that rules are outmoded; they were designed for a previous business environment. Anyone who wants to make it big has to make his own rules. Etc. The chilling truth of the so-called new economy which is nothing another than another form of ongoing deprivation and capital accumulation.
With nearly 14 million unemployed workers in America, many have gotten so desperate that they're willing to work for free. While some businesses are wary of the legal risks and supervision such an arrangement might require, companies that have used free workers say it can pay off when done right.
"People who work for free are far hungrier than anybody who has a salary, so they're going to outperform, they're going to try to please, they're going to be creative," says Kelly Fallis, chief executive of Remote Stylist, a Toronto and New York-based startup that provides Web-based interior design services. "From a cost savings perspective, to get something off the ground, it's huge. Especially if you're a small business."
In the last three years, Fallis has used about 50 unpaid interns for duties in marketing, editorial, advertising, sales, account management and public relations. She's convinced it's the wave of the future in human resources. "Ten years from now, this is going to be the norm," she says.