The unstoppable rise in the gig economy

53 million Americans, or 34% from the workforce, have become 1099 workers. The category covers the complete spectrum of freelancing, from independent contractors, to temps, and also on to occasional moonlighters. The volume of 1099 contractors is required to cultivate by over 4% 12 months through 2020 to around 66 million people. The trend is driven by way of a mix of new technology and age-old incentives. Freelancers are cheaper for businesses who lessen payroll costs and benefit outlays, while workers are granted greater flexibility. A Roosevelt Institute/Kauffmann Foundation joint report argues that, by 2040, the united states economy is going to be "scarcely recognisable".consulting">">consulting

�The gig economy now makes up about a 3rd of the American workforce.

�By 2020 66m Americans are hoped for to get freelance or 1099 workers.

Does everyone really would like the gig?

Is 1099 the real code for our age?

Energy, Financial Services, Government, Healthcare/Pharma/Biotech, Industrials/Manufacturing, Innovation & New Ventures, Media & Entertainment, Nonprofit, Private Equity, Property, Retail & Consumer, Technology & Telecoms, Investment capital

The attractions to be a 1099 are certainly not universal,
as a result of insufficient job security and employment rights. 53% of individuals freelance by choice, 47% out of economic necessity. Although many contractors experience the pliability and control freelancing provides, other medication is increasingly keen to win employee status. Especially in blue-collar segments a little, but growing amount of Uber drivers as well as other 1099s employed by Postmates, Lyft and Washio are fighting lawsuits to get classified as employees and never contractors. Housekeeping services start-up, Homejoy, closed partly because of the load of which lawsuits. An upswing with the �gig economy� presents governments with serious problems. While entitlement systems are made throughout the conception of your fixed job, revenues from payroll taxes are going to fall sharply.

Current legislation not suitable for today�s economy

Numerous analysts think that a sudden alternation in legislation is essential using the introduction associated with an intermediate classification between �worker� and contractor�. Germany's "dependent contractor" status offers a model that mixes protection with flexibility. Simon Rothman, a trader in delivery service platform Sprig, argues for your adoption for these a single. Noting that 38% of on-demand staff is agreed to multiple companies, he desires to see personalized healthcare travel together with the employee. As outlined by tech evangelist Tim O'Reilly, however, legal changes figure to nothing but a sop. Reilly highlights that companies who're nervous of legal actionare already switching workers from 1099 to W2 tax codes and they are capping employees' hours so they really become part-time and don't receive benefits. "We've basically gutted wages for employees, and we're wondering what's happening", he states.

Just what the brains think�

In June, a McKinsey Global Institute Report suggested that online talent platforms - including project sites like, 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 could have the positive impact of increasing employment by 72 million full-time equivalents. The authors believe that an excellent transition towards the �gig economy� requires not merely new labor market regulations, but in addition affordable broadband access for all those and clearer rules from the thorny aspects of data ownership and privacy. talent