The gig economy is becoming the largest employer and training resource.
“It is a myth that ‘gig’ work is less secure: research finds that while on-demand platforms are associated with higher income volatility, there is lower consumption volatility, as workers use side work to make up for unexpected expenses or reduced work hours in their primary employment. As well, long-tenured self-employed workers tend to have as much work as long-term wage workers. Artificial labor classifications like ‘self-employment,’ ’employee,’ and ‘apprentice’ mask a common occupation path that starts out as part-time training wages and gradually elevates to full-time senior wages, which takes about five years.“
In an essay summarizing his findings for the Brookings Institute, Ferenstein said, “Indeed, all across America, there are individuals and cities thriving through technological change; a common pattern among the most resilient regions and workers is an unusual volume of mixing self-employed skilled and lower-skill wage work.”
What this means is technology, coupled with a desire to succeed beyond traditional methods, has increased entrepreneurship and self-determination in certain regions of the world.
Countries with a draconian view and countries that embrace the Sharing Economy will have direct impacts on consumer confidence in those countries. No one will list their apartments, or drive, or provide moving services if the risk of getting fined, arrested, or imprisoned is ever present. The Sharing Economy is fundamentally based on trust, that’s why it’s called Collaborative Consumption.
While the gig economy is not immune to the market forces, the uncertain macro-economic conditions have been conducive for it to thrive. In good times, providers are less likely to sign up to driver, but when the economy sputters, there’s always a corresponding uptick in service providers and drivers.