Roselyn Miller Champion
Grant Analyst, City of Portland
On a Friday evening, a part-time nanny accepts her pay and waves goodnight to the family she鈥檚 worked with for several years. On her way home, she signs into her Uber driver account. She picks up a few passengers on her commute home: a freelance writer, a business consultant, and a house cleaner鈥攕upplies and all. Depending on who you ask, none, some, or all of these folks are considered part of an increasingly trendy workplace structure: the gig economy. And, that鈥檚 a problem.
All of these independent workers have one thing in common: they鈥檙e the boss of their own gig work. With contingent relationships with their employers, they set their own schedules, manage their own taxes, and find and fund healthcare and education independently. Depending on wages and type of work, not all of these workers have the ability to access the same resources, like training to receive a credential needed for career advancement, typically provided under a traditional employer-employee relationship. Since policymakers, researchers, and even workers don鈥檛 land on the same definition for gig work, it鈥檚 hard to quantify the population and produce evidence-based supportive workforce policies aimed at education and training.
The gig economy, in the most general sense, refers to temporary, independent, or contracted positions. The scope of jobs included in that definition changes depending on how contracts legally classify workers, where workers find work, and the nature of the job itself in relationship to the hiring organization鈥檚 main purpose. The documents many different sources for information and research on gig work, and each major survey , leading to very different results. But, gig workers do share one unifying characteristic: they represent a workplace trend that distances employers from employees, placing more responsibilities, especially for career education and training, on individuals rather than corporations.
So how big is the gig economy? Is it growing? Answers to these straightforward questions are elusive, to say the least. That鈥檚 because we lack a consensus definition of what makes someone a 鈥済ig worker鈥 and different researchers use different definitions. As a result, depending on who鈥檚 included in the definition and captured by research design, estimates of the size of the gig economy range from to of the U.S. workforce.
One of the most widely used studies on alternative and contingent work by economists Alan Krueger and Lawrence Katz estimated the gig population at of the workforce, but they later rescinded that number, placing it closer to the Labor Department鈥檚 estimate of . Articles about the gig economy come in waves, undulating from to of the economic significance of this kind of work.
Aside from design and definition limitations, research motives also affect those captured by the term gig economy. Freelancers and college-educated professionals tend to participating in contract work than do. Corporations actually benefit from hiring contract workers, since it scales down operations costs by . Because of this, private and corporate funders might have an incentive to define the gig economy broadly in their reports, or interview higher-wage workers who generally report more satisfaction with freelance work than lower-wage gig workers.
Government studies, on the other hand, struggle to capture every worker participating in gig arrangements, since many gig workers take on multiple part-time jobs for unpredictable amounts of time, and may not even identify their own work as gig or independent work鈥攂ecause, again, the definition lacks consistency and substance. In addition, the way researchers design and ask questions can sometimes lack specificity, getting answers to the wrong questions or unintentionally missing more casual gig workers.
Because of the fluidity, diverse categorizations, and research limitations with the definition of the gig economy, workers flow in and out of jobs that could be categorized as gig work. That makes quantifying this population extremely difficult. Gig economy workers could be part or full time; high or low wage; contracted on an app or through an agency; paid per item, per service, or per hour; and they could have any level of education. Anyone could be part of the gig economy鈥攕he might work at the . You may have even .
Lower-wage gig workers paid per service or per item, like Uber drivers, house cleaners, and security shift workers, face increased precarity. The overall extent of that precarity, and how that connects to changing individual and workforce education and training demands, varies. An individual preparing her career path won鈥檛 get far without preparing her education pathway as well. The gig economy鈥檚 structure requires that the worker acquire the skills she needs before starting the job rather than receiving training while working.
Current workplace trends of increasing credential requirements and contracting out more employees compound the growing variability of employment today. As more employers hire independent contractors, they often require more or different types of evidence the worker has the proper training and education, but since independent contractors cannot legally receive workplace-based training, they have less access to affordable and relevant educational opportunities. An IT contractor would have to predict what skills were relevant to the next job, find the training or credential to prove their skill level, and learn to market and present those skills鈥攁ll without a secure salary or path toward upward mobility in that industry. Contracted child care providers have to navigate the same systems, but for much lower wages and without consistent or transparent guidelines for credentialing.
While a traditional employee career ladder sets workers up to move one rung at a time within a promotion system, the gig economy requires workers to jump from ledge to ledge, working their way through jobs, jumping off and back on independently in order to reskill or retrain. Without a clear understanding of the size and scale of this workforce trend, disparities between supply and demand in workforce education intensify, and current labor and education policies leave workers without clear steps toward building a stable, let alone lucrative, career.
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