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The Rise of the Gig Economy

The History and Future of the Gig Economy Вy 2021, gig workers* will outnumber traditional employees- * freelance, independent, and contract workers History of the Gig Economy History of the Gig Ecónomy Is Gig Work Really New? The Bolden band Jazz musicians coined the term "gig" to refer to performances Вy 1915 Since 2009, "gig economy" has referred to part- time, freelance work - often found through apps 1930s Great Depression like Airbnb or Uber Many farmers had to sell their land due to drought and falling prices But 25% unemployment made finding steady work nearly impossible Most found work as migrants, moving from farm to farm to help harvest 1940s Rise Of Temp Agencies Russ Kelly Office Services began offering typing services Kelly switched to sending clerical staff to work in client's offices | 1946 1948 manpower, inc. was founded to provide temporary staff Soon, temp agencies became a staple of the U.S. economy of Americans worked in 10% alternative employment* 1995 * Contractors, temps, and on-call workers Moving To The Web 1996 craigslist craigslist uLuknda Oe ganalato subscnite / ostaerbs autments for rent art johs Craig Newmark started an email newsletter, "San Francisco Events" eteetera jobs for sale wiking jobs tech events Idlka ta Pastay rerne. Soon the list grew beyond local events, including Come work for the Fouudationt Id like lo PostanAd everything from apartments to job openings - Famdatis and was born Miszias Akt he se Come party wih the Foundatien! December 17, 1o98 List Foundations PO Bo 3 Criala CA 34563 TH +1.925 377.7500 Fas +1.925.377.7525 Nay Meleoe. CEC 1999 Upwork Ek Kasten 25 Nouember 1996 Created to bring visibility and trust to remote workers Gives businesses reliable access to a global talent pool Today, Upwork is largest the global freelancing website 2005 amazon mechanical turk Crowdsourcing marketplace for simple, repetitive tasks that AI can't do Connects requesters with workers who perform microtasks like transcription or answering a survey, for around $0.10 per task There's An App For That O airbnb TaskRabbit 2008 Created as a site for hiring people to run errands and do simple chores Created by roommates as a way to make the rent First app in the sharing economy, let user rent out extra beds Quickly grew to cover nearly any task- From repairs to wake-up calls By 2017, 60,000 taskers were working through the platform Despite initial struggles, by 2018 Airbnb was worth $38 billion 2010 UBER 2 entrepreneurs realized rides are hard to find, especially in bad weather They designed to let users request a ride with the tap of a button 5 years later, Uber drivers had accepted 1 billion rides In the U.S., more than 1 in 3 workers have engaged in some form of gig work Gig Work Today More than 8 in 10 American adults owned a smartphone giving them access to gig work and alternative income sources Who Chooses Gig Work?" * According to McKinsey survey of U.S. & European workers % of independent workers |16% Financially strapped 30% 40% 14% Free agents Casual earners Reluctants Choose independent work as their primary income Use gigs to earn a little extra cash Prefer traditional work but make most of their money through gigs Turn to gig work to make ends meet How Do Gig Workers Use Their Extra Income? More than 1 in 10 use Many use it to buy themselves a little more Americans who work gigs on top of their primary job earn an average of $1,122 per month gig work to get by $13,464 13% 11% 34% 21% 18% Over the year Pay all living expenses Вuy monthly movie tickets Cover rent Виу extra groceries Buy weekly coffee every month + What Gig Work Means For The Economy By 2025, Impact 10% of the global labor force – through full-time employment or supplemental income opportunities could add Increase worldwide employment by 72 million* online talent platforms like $2.7 Trillion to global GDP – that's nearly 2% growth Linked in. UBER * Full-time equivalent positions By 2027, 60% of the workforce will be independent professionals Economy Of The Future In the United States, 94% 64% 57% of gig workers say they prefer increasing it to traditional employment of adults think of employees would alternative consider non-traditional employment employment hurts workers How Gig Work Is Reshaping The Law New York City threatened to ban Airbnb and fine every host - many other cities passed laws making short term rentals illegal, unless a host was present 2014 + 2015 Airbnb spent $8 million countering a similar law in San Francisco Arizona passed a law requiring Uber and Lyft drivers to carry additional insurance, and adding new guidelines for rideshare companies 2015 Florida passed a law declaring rideshare drivers as contractors 2017 California passed a law making app-based workers employees 2019 The Rights Of Gig Workers: Contractor vs. Employee Just like the temp jobs in the 1940S, gig work benefits companies by exempting workers from health insurance benefits and workplace protections As independent contractors, gig workers aren't guaranteed the same rights as employees, including: Right to organize and collective bargaining Minimum wage and overtime protections What's Next? Access to unemployment and workers' compensation benefits Employer contributions to social security Treating rideshare drivers as employees would bring legal protections, but there are also costs Protection from harassment and discrimination Though gig work platforms consider their workers to be self-employed, some platforms go so far as to require a uniform Companies will spend 67% more per driver – up to $6 billion a year Sources: Drivers could lose perks like the ability to set their own hours Riders will likely pay higher fares $0.70 to $1.80 more per ride UBER & lyR have spent $60 million on a 2020 ballot measure to reclassify their California workers as contractors As the gig economy grows, how will it impact workers? gigworker DEVELOPED BY N NOWSOURCING photo via

The Rise of the Gig Economy

shared by NowSourcing on Dec 06
The gig economy is supplying jobs to more than ever, and by 2021, there will be more gig workers than traditional employees. Here are the ins and outs of the gig economy.






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