With the rise of the Internet and other remote money-making endeavors, less and less people are relying on traditional 9 to 5 jobs for their income, making up a growing part of the labor market in the form of gig workers. These workers, who include independent contractors, on call workers, and workers that contract out through third party companies, were estimated to make up between 650,000 and 4 million people in the labor force. The number was found through research that the Labor Department did from 2012 to 2016, looking into jobs like babysitting and running online businesses to add to their employment census. With the inclusion of gig workers, the Department predicted an increase of total employment by 0.4 to 3 percent.
This increase, while seemingly marginal, is pretty significant, especially at a time where unemployment is at a 48 year low, and total employment is reaching a maximum. It also raises the question of stability in the labor market — gig workers work inconsistent hours, earn inconsistent wages, and don’t have structural systems set up around them, like the healthcare coverage that many employers provide for their employees.
As part of their study, the Labor Department expanded their employment data questionnaire to include data from a separate survey, one that asked more generally about what people did and got compensated for rather than a question about a traditional “job.” The census data mostly misrepresented women and people ages 15 to 24, as those demographics were found most often to be represented as unemployed even when they were earning a nontraditional income. Furthermore, the Department found that anywhere from 400,000 to 2 million people are incorrectly assigned one job when they hold multiple, a statistic that could increase the percentage of people in the US that have multiple jobs by as much as 21%.
This change in the labor market is crucial to understanding the patterns of the modern US worker. As more flexibility has opened up with ways to earn an income, the government has been looking for more accurate ways to represent the different ways that people can make money, and are focusing on improving the representation for demographics that often get miscategorized. It also means that the labor market is becoming tighter, as more people get jobs and the stability of the labor market as a whole is questioned.
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Never thought about how the economy is shifting as a result of a new job market, interesting post Emma! As you noted, there’s the appeal of flexibility and that you run on your own time from the household. I think another reason why there’s a rise gig workers and its becoming more popular is because the internet is so large that it has allowed for especially artists to find their own niche and really work in the visual area, like freelancing in graphic design. However, I think that a lack of health care is actually a potential loss for gig workers, not to mention other job perks such as food included, travel expenses covered, stable job income.
ReplyDeleteEmma, once again, great post! I was fascinated to learn about gig workers, because I had known about work of that type before but hadn't made that economic connection in my head. The internet truly is revolutionizing all aspects of society, and the labor market is no exception. I think that gig workers are also increasing specialization in the labor market, as they are providing an even more specific talent for the general public than say, a worker in a company. The worker in the company must abide by the demands of the company, and thus their skills are restricted to some degree. An individual gig worker, however, is not necessarily restricted by anything, as long as their skill or product is demanded. Thus, specialization increases. I can see why gig workers is an increasing employment type, as it offers a lot of freedom to individuals while mostly assuring economic security. Gig workers could possibly be the next office worker several decades down the line.
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