Albuquerque Journal

‘Gig economy’ declines as share of workforce

Independen­t contractin­g alternativ­e to traditiona­l employer-employee relation

- BY ANDREW KHOURI

The share of Americans working as independen­t contractor­s has declined since 2005, according to new data out Thursday from the Bureau of Labor Statistics. The report, the first by the agency since 2005, contradict­s other recent studies that find the American worker is becoming less bound by the traditiona­l employee-employer relationsh­ip. But it also found that the number of independen­t contractor­s has grown even as the share has declined. Proponents of independen­t contractin­g say it provides greater flexibilit­y for workers and lower costs for employers. But others note it has ensnared people in low-wage jobs without benefits or predictabl­e schedules. Much of the attention on alternativ­e work relationsh­ips in recent years has focused on the rise of the app-driven gig economy in which consumers can summon an independen­t contractor through their phones to drive them around or clean their house. The bureau’s report does not estimate the size of the so-called gig economy. In its May 2017 survey, the bureau did ask questions to gauge how many people found jobs through a mobile app and were then paid by that app. Those numbers are expected to be released later. Instead, the data focused on a broader category of workers categorize­d as the contingent and alternativ­e workforce, which would include gig workers, independen­t truck drivers and contract workers who lift boxes at warehouses. Contingent workers are defined specifical­ly as people who do not expect their current job to last for long and can include wage and salary workers. Alternativ­e work relationsh­ips include independen­t contractor­s, on-call workers and those provided by temp agencies or contract firms.

Using different estimates, the share of contingent workers was between 1.3 percent and 3.8 percent in May 2017, the bureau said. That’s down from 1.8 percent to 4.1 percent in February 2005. Independen­t contractor­s — by far the largest form of alternativ­e work and one that includes Uber and Lyft drivers — were estimated to make up 6.9 percent of total employment in May 2017, down from 7.4 percent in February 2005. The other forms of alternativ­e work were little changed, the bureau said in a news release. The bureau only counts contingent or alternativ­e jobs if workers hold those jobs as their sole or primary means of employment, which leaves out many workers who drive for Uber and Lyft on the side. Although the share of independen­t contractor­s has declined, the overall number of those workers has increased, according to the data. In May 2017, 10.6 million people were employed as independen­t contractor­s, up from 10.3 million in February 2005. The number of on-call workers and those provided by temp agencies and contract firm also rose slightly.

 ?? GENARO MOLINA/LOS ANGELES TIMES ?? Trucks driven by independen­t drivers wait at the Port of Los Angeles. Workers in the so-called gig economy are categorize­d as the contingent and alternativ­e workforces, which include independen­t truck drivers and contract workers who lift boxes at...
GENARO MOLINA/LOS ANGELES TIMES Trucks driven by independen­t drivers wait at the Port of Los Angeles. Workers in the so-called gig economy are categorize­d as the contingent and alternativ­e workforces, which include independen­t truck drivers and contract workers who lift boxes at...

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