Wednesday, October 12, 2016

MGI Conducts New Study: ¼ Workers Included in “Gig” Workforce

Recently, the McKinsey Global Institute (MGI) conducted a study on the “gig” economy and found several comparisons to both lower-income countries and pre-Industrial Revolution United States and Europe.

A “gig” economy refers to a market in which temporary positions and short-term engagements are common, whether the workers be independent contractors, temporary workers, self-employed, part-timers, freelancers and free agents.

Probably the most well-known “gig” company today is Uber, alongside Lyft and TaskRabbit, who all refrain from hiring full-time employees, but rather only hire independent contractors as workers. Jobs such as these may be flexible at times, allowing employees the freedom to set their own schedules and such; however, there are downsides, all of which drip down to the primary concern of every “gig” worker: no predictable earnings or hours.

McKinsey found at the end of their study that approximately one-quarter of the working-age population (U.S. & EU-15) is consolidated in the “gig” workforce with Uber and its digital peers. The actual numbers were between 20% and 30% or 160 million people or so.

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