Dive Brief:
- "Gig economy" companies represent a tiny part of US employment data, but receive a major amount of hype and attention nationwide, Quartz reported.
- Considering the protests, lawsuits and billions of dollars being invested, the hype makes sense. Plus, the way these companies are structured regarding workforces mean that some traditional labor policies and regulations are somewhat in turmoil.
- But at this point, the on-demand economy remains an enigma, the article says, as it is still unknown whether companies like Uber will remain dramatic entities of change or major mistakes that hinder the economy and the American worker. Unfortunately, by the time it all shakes out, "it may also be too late to turn back," Quartz notes.
Dive Insight:
Quartz cites a study released by JPMorgan Chase that found only 0.4% of adults make money from on-demand work in any given month. Other reports are much more generous. For example, a report released in January by Burson-Marsteller, Time and the Aspen Institute claimed that 45 million Americans (22% of the adult population) have offered services via on-demand companies.
What's the impact? One expert, Lawrence Katz, a Harvard professor who follows on-demand work, told Quartz that the trend could be eroding standards for workers who do not relish the flexibility and independence that gig workers cherish. He also said that if a major employer such as Walmart adopted the on-demand labor model, the results could be very disconcerting.
The vast majority of HR departments remain unaffected, but that may change should traditional employers consider the gig economy as an alternative for filling jobs.
