The gig economy continues to evolve, encompassing workers who perform a wide range of tasks, from delivering groceries to providing rideshare services. This shift is exemplified by individuals who juggle, for example, driving for Uber during weekdays and delivering food for DoorDash on weekends, reflecting a growing reliance on gig work as a primary and supplementary source of income.
As the gig economy becomes an integral part of the broader labor market, efforts to better understand its nuances have intensified. But how can we truly understand the impact of gig work without reliable data?
Accurately capturing the data behind even regular employment has proved challenging, as we saw with the recent major job market revision. However, in response to the growing prominence of gig work, new research is expected to focus on capturing a more accurate picture of this important workforce segment.
According to a recent article by Rebecca Rainey, "New Gig Economy Survey on Track to Give Better Worker Data," the Bureau of Labor Statistics (BLS) is set to release new survey data aimed at providing clearer insights into the gig economy.
An interagency Work Arrangements Committee, chaired by the BLS and including various federal agencies such as the Census Bureau, has been formed to assist in defining and measuring nonstandard work arrangements for statistical purposes.
Gig Economy Survey: Addressing Data Gaps with Current Population Survey
Despite gig work's growing significance, the raw data and tools for measuring its impact have lagged. For years, existing surveys, such as the American Community Survey and the Current Population Survey, have struggled to capture the full extent of gig work. As a result, government data on gig workers has been elusive, with the last official tracking by the Bureau of Labor Statistics (BLS) dating back to 2017. Past employment data surveys often provided an incomplete or inaccurate portrayal of the gig workforce, highlighting the need for better available data sources and more accurate question wording to reflect the gig economy's realities.
In some cases, data suggested that less than 5% of the labor force was engaged in gig work, while other sources estimated that gig workers made up nearly half of the workforce. This discrepancy highlights the need for more reliable data sources and refined question wording to accurately reflect the realities of gig work.
The new gig economy survey aims to address these issues by including a broader range of gig work activities and better capturing those who hold multiple jobs. This is particularly important for understanding how many workers are involved in gig work as a secondary source of income, supplementing their primary employment to make ends meet. Additionally, the survey aims to capture the experiences and trends of gig platform workers over the past year, including their motivations and hours contributed.
Understanding the Gig Workforce
Who actually makes up the gig workforce? As of right now, we probably don't really know.
To address these challenges, the upcoming BLS survey aims to delve deeper into the makeup of the gig workforce. The survey is expected to provide detailed insights into the demographic composition of gig workers, including factors such as age, race, and gender. This is crucial, as recent data from companies like Uber and DoorDash shows that the number of gig economy participants is rapidly increasing. Uber reported a record high of 5.4 million 'earners' (their term for drivers) in late 2022, with DoorDash revealed over two million active monthly Dashers. Since that time, the popularity of gig work has only increased, with Uber recently reporting 7 million earners and driver earnings of $16.6 billion in the first quarter of 2024.
Previous research, including studies by the Pew Research Center, has shown that women, younger workers, and minorities are disproportionately represented in the gig economy. By capturing more nuanced data, the BLS hopes to offer a clearer picture of gig workers, their jobs, and how their experiences compare to those of traditional employees.
For example, the survey will examine the differences between independent contractors and those classified as employees, exploring the implications of this distinction on earnings, benefits, and job security. The data will also show how gig companies like Uber and Lyft rely on independent contractors to deliver services and how this affects workers' income and job stability.
The Role of Gig Work in the Broader Economy
Beyond understanding who participates in gig work, it’s crucial to recognize the broader economic implications. Gig work plays a significant role in the economy, providing flexible employment opportunities for millions of Americans. However, the lack of benefits typically associated with traditional employment, such as health insurance and retirement plans, poses challenges for gig workers.
In fact, 14% of gig workers often earn less than the federal minimum wage on an hourly basis, and 19% have reported going hungry because they couldn't afford food. According to the Economic Policy Institute, 'gig workers lack overtime pay, unemployment insurance, health and safety protections, and the right to a union. The lack of paid sick days, family leave, and vacation time can lead to overwork and burnout.' Despite these drawbacks, platforms like Uber and DoorDash do offer a crucial safety net, allowing individuals to 'search longer for their next job' and reducing reliance on unemployment insurance during periods of economic volatility.
Gig workers also face limitations in decision-making, including fares, routes, and customer interactions. This also raises important questions about the adequacy of existing labor laws and the protections available to gig workers. Issues such as minimum wage, collective bargaining rights, and access to benefits are at the forefront of debates surrounding the gig economy.
The new survey data is expected to contribute to these discussions by providing concrete evidence of how gig workers are faring compared to traditional employees. This will be critical for policymakers as they consider potential reforms to better support the gig workforce.
Implications for Businesses and Policymakers
Given the substantial impact of gig work on both workers and the economy, stakeholders must consider the broader implications. As businesses and policymakers await the release of the new survey data, there is an opportunity to reflect on the importance of understanding the gig economy.
Experts like Erica Groshen, former commissioner of the Bureau of Labor Statistics, have in the past emphasized the need for accurate data to guide investments, career choices, and policy decisions, highlighting that 'we could do so much better' in understanding this crucial segment of the workforce. Companies that rely heavily on gig workers, such as those involved in making deliveries or providing household tasks, must stay informed about the latest trends and regulations affecting this workforce.
For management consultants and business leaders, the survey’s key findings will offer valuable insights into how the gig economy shapes the broader labor force and what this means for the future of work. Understanding these dynamics is crucial for developing strategies supporting business growth and worker well-being.
Stay Informed about the Gig Economy
In light of these developments, remaining up-to-date with the latest findings is more critical than ever. As new data from the gig economy survey becomes available, staying informed will be essential for anyone involved in the world of work. With ongoing efforts to improve the quality of gig worker data, businesses and policymakers must prepare to navigate this complex landscape. The broader question we might ask is, are decision-makers ready to adapt as the gig economy continues to evolve?
By leveraging platforms like Aura, which offers comprehensive workforce insights, stakeholders can make informed decisions that align with the evolving nature of the economy. Companies, consultants, and policymakers alike must be prepared to navigate the evolving landscape of gig work. Aura’s workforce analytics platform provides a comprehensive resource for accessing and analyzing workforce data, enabling informed decision-making in this rapidly changing economy.
Contact us for a demo to learn how Aura can help you understand the latest gig economy trends and broader workforce and labor market data.
