Slashdot Mirror
The Gig Economy is Actually Smaller Than It Used To Be, Labor Department Says (marketwatch.com)
The so-called gig economy is actually slightly smaller than it used to be, according to a new Labor Department report released Thursday that chronicles the jobs market in the age of Uber. From a report: In May 2017, the Labor Department counted 5.9 million people, or 3.8% of workers, in what it calls contingent jobs, which are those that the workers don't expect to last or that workers call temporary. In 2005, the last time the government looked into the issue, there were 4.1% of workers who classified themselves this way. "Taken at face value, the results indicate that the role of non-traditional work arrangements in the U.S. economy has remained largely unchanged during the past 20 years, even as excitement and media coverage of the growth of the 'gig economy' has increased," said Brian Schaitkin, senior economist for The Conference Board.
3-5 years tops in the tech industry. Unless you do gov work your not getting a pension or even thinking of lasting there till retirement. They wouldn't keep you, but odds are good they wouldn't exist anyway...
The gig economy is ultimately not sustainable. For one thing, the gig economy cheapens real world skills. For example, the recent law school graduate that might be in an area saturated with lawyers might advertise basic services for dirt cheap just to get money coming in the door. But this amount of money comes nowhere near to both providing food and shelter and paying off the enormous student debt. For another, the worker participating in the gig economy must continue to chase micro jobs that pay peanuts in the hope of getting enough volume to make it remotely worthwhile. And, there are more service providers than there are people to consume them virtually ensuring that gig economy participants are competing for scraps. I kind of liken it to being the low ranking wolf in a pack - it's competition for scraps that still won't fill the belly.
That makes sense. People take "gigs" to tide them over until they can get a real job. But real jobs are more available now.
There was a bunch of people out of work a decade ago when rising gas prices made the housing bubble burst leading to the Econopocalypse that everyone likes to references with "These hard economic times". But those times are over. We've had steady (if slow) employment growth and now unemployment is creeping below 4%. Down into rates we haven't seen since the 1960's.
Anyone in the gig economy is underemployed (or has REALLY shitty job prospects). As times get better, fewer people need to do shitty gigs to make ends meet.
(And it's less... new. For a while, all those people were being paid with venture capitalist money)
to Meg economy?
Few of the "gig" workers I know would show up on a survey like this. I am a gig tech worker. I don't have an LLC and am paid for tasks or work performed or for an end product via cash or check. From their point of view, I'm essentially unemployed though I make a living.
In the non-tech arena, I know many people in a more rural area who lost traditional jobs in the 2009-2012 period who never returned. They now cut down trees, perform handyman jobs, do construction under-the-table, etc. Their work is steadier than you might imagine with many working a job for a couple months at a time though being paid daily. Most will tell you they are doing better now than before and certainly enjoying their lives more. They would also indicate that they are unemployed. The state is showing decreased unemployment though the total employed is still much lower than pre-recession.
You have to work harder to evaluate the gig economy. Even for tech workers like me, it mostly works in the way day-labor markets work. Often, it is even worse. I know gig economy tech workers who work for a piece of the pie upon success instead of pay. The problem is, success happens one time in four or so.
Alternatively people aren't saying Lyft/Uber/etc are short term gigs, but instead viewed like a job. Since it's self-reported whether it's short term or not./p.
Your ad here. Ask me how!
8 of 10 small businesses don't make it 18 months. A person deciding to try gig work is in essence a one person small business. As an individual who has been a self employed contract programmer for 30+ years. Getting over the hump is tough. Especially, sense most everything you think, turns out to be wrong or at the least needs a lot of adjustments ;) Also, it means long hours and requires one to be very versatile. And in addition the market and economic reality is always changing. Which requires one to always be asking what is next and re educating ones self for what will come in 6 months.
;)
Just my 2 cents
64% of the work-age population is working. I am one of the 36% but not included in the unemployment statistics.
I am a caucasian male with a computer engineering degree and a couple of decades of experience who had to leave the field for a few years. When I tried to return, age discrimination kept me from getting into a job even though I was willing to start at the bottom. I now do odd jobs related to my field off-the-books.
Gig Economy jobs suck - they're horrible jobs with low pay and high misery components - why shouldn't the Gig economy workforce be shrinking?
Perhaps - just perhaps, with more open jobs than workers looking for jobs, potential "Gig'ers" have better options than leasing a car from Uber, buying Uber's insurance, driving strangers all over town, and hoping to earn more than gas money for the privilege?
Ken