What Do the Data Say?
A 2016 study by McKinsey & Company, an international
consultancy, surveyed 8000 individuals in the United States and
Europe and examined the nature of their work experience. The
study’s central finding is that between 20 and 30 percent of the
working-age population (roughly 162 million people) is engaged
in “independent work.” As the table below shows, such work in
the gig economy, whether for primary or supplemental income,
is the preferred choice of about 70 percent of the surveyed
independent workers. In contrast, just over 30 percent of those
involved in the gig economy claim to be doing so out of
necessity, either because they cannot find a traditional job or
because they need to earn extra money. (The fraction of
Canadians involved in independent work is similar, and has
been rising over time. Since 1997, the number of Canadians in
temporary jobs has increased by 38 percent while the number
in traditional jobs increased by only 17 percent.)
The McKinsey study also finds that the individuals who have
chosen to work in the gig economy report greater satisfaction
with their working lives than those who do so out of necessity.
This greater satisfaction is true across countries, ages, income,
and education levels. In short, while working in the gig
economy appears to be an undesirable outcome for many, the
clear majority prefers it to traditional work.
The Characteristics of Workers in the Gig Economy (162
million workers in the United States and Europe)