I focused my research this week on the changing nature of jobs, particularly in relation to “the gig economy.” The gig economy refers the “increased tendency for businesses to hire independent contractors and short-term workers, and the increased availability of workers for these arrangements” (Alton 2018). That means that as the gig economy grows, the nature of jobs is changing. Intuit estimates that “gig” workers represent 34% of the, and will grow to be 43 percent by 2020 (Gillespie 2017). These nontraditional jobs are growing at a far faster rate than traditional ones. Gig workers are usually categorized as independent contractors rather than employees, meaning they don’t have health insurance through work, they bear the full cost of their self-employment taxes, they don’t qualify for unemployment insurance, they don’t receive works compensation through their company, the Fair Labor Standards Act minimum wage and overtime rules don’t apply, they have little or no path to retribution if they face discrimination, no 401(k) matching through work, no paid leave and can’t join unions because they are treated as businesses!
While the category of worker “independent contractor” isn’t new, the proliferation of positions in the gig economy is. Additionally, because of the nature of technology, companies can have bigger influence on their independent contractors than anyone had over traditional plumbers for example. Because benefits can account for more than 30% of an employee’s cost to their employer, tech companies engaged in the sharing economy and relying on independent contractors are cutting their costs and passing not only the cost, but also the uncertainty on to workers creating a new “precariat” (Nova 2018).
This is the economic landscape in which Millennials are expected to find work. These jobs may offer more choice and flexibility for workers, but they eliminate the form of safety net that traditional employment can’t provide.
Learning more about the gig economy and the precariat has made me think a lot about Millennial values; are Millennials willingly giving up the solid ground of more traditional jobs to engage in shorter term projects with far more flexibility? Do people who work in the gig economy feel more or less alienated from their labor than people who work other kinds of jobs? In the group I am interviewing, have any of the interviewees considered working these jobs? What kinds of ideas about status do these jobs hold? These are all questions I will incorporate into future interviews.
Because so much of this relates to welfare and entitlements, which in the US primarily tied to the market i.e. jobs, I also did some reading about different models for welfare regimes to understand how the economic landscape may look different elsewhere. Esping-Andersen identifies three pillars of welfare: family, government and markets (Esping-Andersen 1990). When neither pillar can substitute for the two others, there is a welfare crisis (Esping-Andersen 1990). The gig economy seems to be contributing to the challenges of saving for retirement (no 401(k) matching) and affording children (no parental leave), harming the “family” welfare pillar. The market is not acting as a welfare pillar, because these jobs don’t have benefits tied to them. That leaves government, which, in this political climate, we cannot expect to absorb the shock. When we called Millennials entitled, this is, at least for some of them, the economic landscape they are a part of or at least witnessing around them.
Next steps: continue interviewing, continue memoing and contextualizing the interviews
Kendall,
I am reading your log in Providence, RI this week, where I am thinking about a new project that explores the role of art in gentrifying small towns. I have actually spoken with several millennial artists, who are unable to rely on their artistry to make ends meet, and as a result, supplement their income in a variety of ways. Some work as servers in high-end restaurants. Others drive Lyft or Uber in their spare time. Some contract their services to small companies, doing freelance design work. The gig economies that many of these young people are working in enables them time and (limited) resources to continue pursuing their dreams.
I wonder whether the literature you have consulted considered some of those positive aspects of gig economies. When you are young, there is a certain expectation that the jobs you will work out of college are not necessarily careers. And while some of these jobs offer benefits (like retirement or medical insurance), I cannot imagine young people thinking about retirement (or putting money into a retirement fund) if they realize that they are only working a job. To connect the themes from your previous discussions, are Millennials making calculated decisions to participate in the gig economy? Do they see the entitlements afforded them through more traditional forms of wage labor insufficient if that means they have the space and time to pursue their passions? I think you are hitting on how Millennials are considering the costs and benefits of the work they do out of college, and given that youngsters can stay on their parents’ insurance until they are 26, I cannot imagine there being any incentives to burden oneself if they don’t find it necessary.
I look forward to some of the responses you have generated from interviews. You have a strong foundation from the sociological literature. I hope it helps inform the questions you ask, as opposed to limit what your interlocutors tell you. Keep up the great work!!