Bloomberg Businessweek - USA (2020-11-02)

19

MIKE

BLAKE/REUTERS;

DATA:

UPWORK

freedomandthat an employee-basedmodel

wouldraisecostsforcustomers.Theoutcome—

whilelegallybindingonlyinCalifornia—could

haveramificationsacrosstheU.S.,potentially

influencingstateslookingtotightenregulation

ofthegigeconomy,whichhasthrivedintheera

ofapp-basedwork.LawmakersfromNewYork

toIllinoiswhoarealsorethinkinglaborlawsfor

gigandfreelanceworkersmaytakea cuefrom

California’shandlingofProp22.

App-basedcompanieshavepropelled“this

longer-term trendaway from stablefull-time

employment,”saysJulietSchor,a professorat

BostonCollegewhostudiesgigworkers.“Thedan-

gerousthingaboutit is,thebiggerthisgigecon-

omyis andthemoreit underminesprotectionsfor

workers,themorelikelyyouseethereductionof

thosestable,securejobs.”

ThestakesarehighinCalifornia,wherethegig

economyhasbeena driverofeconomicgrowth

andanoften-mimickedbusinessmodelformany

technologycompaniesbasedinSiliconValley.A

studybytheU.S.BureauofLaborStatisticsestimates

10%ofAmericanworkersnowtakepartin“alter-

nativeworkarrangements.”Theseincludetemp

agencyandon-callworkers,thoughmostecon-

omistscan’tevenagreeona formaldefinition of

gig work, let alone on the size of its contribution

to the workforce. The Federal Reserve says 31% of

adults age 18 and older participate in the gig econ-

omy, at least for supplemental income. In academia,

researchers at the sister institutions University of

California at Riverside and UC Berkeley are feud-

ing via papers and rebuttals over how to calculate

hourly earnings: Should the time in which drivers

are waiting for rides count, or not?

The ballot measure promises to be a nail-biter.

While an early August poll from London-based con-

sulting firm Redfield & Wilton Strategies showed

“yes” leading “no” 41% to 26%, 34% of voters were

still undecided. In a survey by UC Berkeley released

on Oct. 26, the “yes” and “no” sides were close,

◀ An app-based gig

worker at an Oct. 8

demonstration outside

Los Angeles City Hall

◼ TECHNOLOGY Bloomberg Businessweek November 2, 2020

2014 2020

▼ Number of American

workerswhofreelance

60m

55

50

2014 2020

▼Typesoffreelancers

Full-time

Part-time

Full-time employees

who earn extra money

from freelancing

60%

30

0

▼ Reason active

freelancers say

they started

◼ Necessity

◻ Choice

Freelancers who started

during the pandemic

Freelancers who started

before the pandemic

35%

54%