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The unstoppable rise with the gig economy

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 53 million Americans, or 34% from the workforce, are actually 1099 workers. The category covers the entire spectrum of freelancing, from independent contractors, to temps, and on to occasional moonlighters. The amount of 1099 contractors is expected growing by over 4% annually through 2020 close to 66 million people. The popularity is driven by a mixture of new technology and age-old incentives. Freelancers be cheaper for companies who eliminate payroll costs and benefit outlays, while personnel are granted greater flexibility. A Roosevelt Institute/Kauffmann Foundation joint report argues that, by 2040, america economy will probably be "scarcely recognisable". �The gig economy now is the reason a third with the American workforce. �By 2020 66m Americans are anticipated to get freelance or 1099 workers. Does everyone want the gig? Is 1099 the real code for the age? Energy, Financial Services, Government, Healthcare/Pharma/Biotech, Industrials/Manufacturing, Innovation & New Ventures, Media & Entertainment, Nonprofit, Private equity finance, Property, Retail & Consumer, Technology & Telecoms, Capital raising The attractions to be a 1099 are never ever universal, due to deficiency of employment and employment rights. 53% of men and women freelance by choice, 47% out of economic necessity. Although many contractors enjoy the flexibility and control freelancing offers, others are increasingly keen to win employee status. Especially in blue-collar segments a smaller, but growing variety of Uber drivers as well as other 1099s doing work for Postmates, Lyft and Washio are fighting lawsuits to become classified as employees instead of contractors. Home cleaning start-up, Homejoy, closed partly as a result of the weight of these lawsuits. The increase with the �gig economy� presents governments with serious problems. While entitlement systems are built around the conception of a fixed job, revenues from payroll taxes are set to fall sharply. Current legislation not made for today�s economy Several analysts think that an urgent difference in legislation is needed using the introduction of your intermediate classification between �worker� and contractor�. Germany's "dependent contractor" status supplies a model which combines protection with flexibility. Simon Rothman, a trader in delivery service platform Sprig, argues for the adoption of these one particular. Noting that 38% of on-demand workers are agreed to apply multiple companies, he desires to see personalized healthcare travel with the employee. In accordance with tech evangelist Tim O'Reilly, however, legal changes total nothing more than a sop. Reilly highlights that companies who are nervous of legal actionare already switching workers from 1099 to W2 tax codes and are capping employees' hours so they become part-time and don't receive benefits. "We've basically gutted wages for workers, and we're wondering what's happening", he admits that. What are the brains think� In June, a McKinsey Global Institute Report suggested that online talent platforms - starting from homes like Monster.com, to digital marketplaces like TaskRabbit and talent management agencies like PayScale and ReviewSnap - could boost global GDP by 2% or $2.7 trillion by 2025. Platforms may have the positive impact of skyrocketing employment by 72 million full-time equivalents. The authors reason that an effective transition towards the �gig economy� requires not simply new labor market regulations, and also affordable broadband access for those and clearer rules in the thorny regions of data ownership and privacy. interim

 

Posted Oct 01, 2015 at 9:07am

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