The Future of Gig Employment

There’s no denying that the gig economy has seen much growth since the last recession. With the spread of covid-19 and the surge of the Delta variant, gig employment has only seen greater growth and demand. However, the classification of gig workers as employees vs. retaining them as contractual workers has recently attracted quite a debate throughout the country. Are there two sides to it? Let’s find out.

Flexibility and Safety

With more consumers staying home and hesitating to use public transportation and similar services, the need for transportation and food-delivery services has rapidly increased. The major players in this field include Uber, Lyft, Doordash, Grubhub and Instacart. The flexibility and independence that come with these jobs attract a large number of applicants to these companies. However, as the pandemic continues, many gig workers fear for their health and safety. The lack of job benefits, health insurance and perks that often accompany traditional employment has only made things worse for gig workers. 

Labor Shortage

All major industries across the US have been experiencing a labor shortage as employees seek out better pay and benefits. The Great Resignation, as the phenomenon is known, has left many companies in a dilemma. While the reasons for these resignations vary from employer attitudes to shift in priorities, it has only proven to companies that employee satisfaction and benefits need to be prioritized. Now, mass unemployment is the issue at hand for companies. Additionally, Uber, Doordash and Lyft also saw a considerable fall in shares recently. 

A Safety Net 

If gig workers continue to be classified as independent contractors, gig companies do not have to provide benefits to them. On the other hand, it gets harder to make ends meet for the workers. While there are allowances like the Pandemic Unemployment Assistance (PUA) under the CARES Act, these benefits expire soon leaving these workers unsupported. In such conditions, gig workers continue to work without a safety net or economic security. Recent protests and strikes by gig workers highlight the need for better support and assistance. 

Small Successes 

The recent ruling in California by Judge Frank Roesch declared Proposition 22 unconstitutional. Proposition 22, a measure to classify gig workers as independent contractors, was greatly supported by gig companies. Similarly, the companies have also been fighting a lawsuit by Maura Healey, Massachusetts attorney general who seeks to classify gig workers as employees. While these small successes bring some relief, it isn’t an ultimate solution to the issue. 

As the gig economy expands, it might be time to rethink some business models and prioritize the needs of the workers as much as the profits. Hopefully, policymakers identify this gap and propose better models for both the employers and the workers. Ultimately, gig employment is here to stay and it’s about time we find a balance.