How the Gig Economy is Reshaping the Work Week

The 40-hour work week may be alive and well, but it looks nothing like it did a generation ago – at least not if you’re part of the growing ranks of people dipping a toe in the on-demand economy.

New data from Intuit Inc. shows that on-demand economy workers average 40.4 hours per week, but rely on three different sources of income to make up their entire paycheck. The most common sources of income are: on-demand work (34 percent), a traditional full or part-time job (30 percent), contracting and consulting (19 percent), and running a business (14 percent).

The new data comes from a study from Intuit Inc. and Emergent Research that examined people working via eleven on-demand economy and online talent marketplace companies. Study participants included: Deliv, Field Nation, HourlyNerd, MBO Partners, OnForce, Uber, Upwork (formerly Elance-oDesk), Visually, Wonolo, and Work Market.

“The on-demand economy is reshaping the way people earn a living, take control of their careers and support their families. From drivers, to designers, to management consultants – people have more opportunities than ever to supplement existing income streams or to take the leap into being their own boss,” said Alex Chriss, vice president and general manager of Self-Employed Solutions at Intuit.

“But we must also recognize the shadows that have emerged. The benefits infrastructure of a generation ago was not built to accommodate the reality of work today. At Intuit, we’re committed to building new solutions that deliver certainty and stability for self-employed people who are stitching together different income streams.”

On-Demand Work Supplements Existing Income

The study shows that the on-demand economy is playing a unique role in the labor market by providing people with flexible opportunities to augment their existing work:

63 percent of on-demand workers indicate that “the primary reason I work in the on-demand economy is to supplement my income.”
Other primary reasons for working in the on-demand economy include:

“Creating and controlling my schedule” (46 percent)
“A desire for greater work/life flexibility” (35 percent)
“Being my own boss” (32 percent)

Only 11 percent reported turning to on-demand work “because of an inability to find a job.”

High Satisfaction With On-Demand Work

The study found that most people working in the on-demand economy are satisfied, while key challenges focus on finding enough predictable work.

91 percent of people working on-demand jobs report that they like controlling decisions about where, when and how they work.
70 percent of on-demand workers are satisfied with their work arrangement.
On-demand workers are concerned with finding steady income, and cited the following challenges:

Getting enough work (57 percent)
Not enough predictable income (50 percent)
Getting paid the amount I feel I deserve (41 percent)
Lack of job security (22 percent)

On-demand Workforce Demographics

People working in the on-demand economy are well represented across millennial, Gen X and baby boomer generations. The vast majority are well educated, and men outnumber women.

Gender:

Male: 66 percent
Female: 34 percent

Age:

Millennials (18-34): 39 percent
Gen X (35-51): 36 percent
Baby boomers (52-68): 24 percent
Seniors (69+): 1 percent

Education:

Less than high school: 1 percent
High school/GED: 12 percent
Some college or two-year degree: 36 percent
Four-year college degree: 31 percent
Graduate or professional degree: 20 percent

Ethnicity:

White: 64 percent
African-American: 12 percent
Hispanic: 10 percent
Asian/Pacific Islander/Indian sub-continent: 7 percent
Other: 7 percent