The Gig Economy Is Shrinking

For years, experts predicted the rise of the gig economy. But recently released data shows it’s actually shrinking.

The gig economy — which is made up of freelance workers, or independent contractors — was said to be the future of work. Studies have even estimated that as much as 30 percent of the workforce falls into this category, which includes a diversity of jobs from Uber drivers, to handy people, to writers.

However, the theory that the traditional 9–5 workdays would be exchanged for more alternative work arrangements has fallen to the wayside, according to the newest U.S. Bureau of Labor Statistics (BLS) study.

“[…] The share of Americans in gig work fell to 10.1 percent of the labor force last year, from 10.9 percent in 2005, the last time the BLS studied these work arrangements,” the article reports.

Just about all “types” of “gig workers” — temporary, on call, independent contractors, etc. — saw a slight decline, while some held steady. Independent contractors, for example, saw a decline from 7.4 (2005) to 6.9 (2017), whereas temp workers stayed at .9 percent in both 2005 and 2017.

The results have surprised economists. But should they? 

John Horton, professor at New York University’s Stern School of Business, helps put things into perspective. Uber, the so-called poster child for this type of work, employs 900,000 in the U.S.; while this may be big, it’s also small, said Horton, “On the scale of the labor market as a whole, it’s unimportant.”