Independent work: choice, necessity, and the gig economy

Part-time incidence vs. labor force participation of seniors, 2013
%
64
30
4
52
46
50
32
26
24
28
20
44
18
6
40
16
42
36
34
38
48
14
12
10
22
8
62
60
52
50
48
46
44
0
2
42
40
54
56
58
68
66
Slovenia
Finland
Romania
Sweden
Luxembourg
Slovakia
Portugal
Hungary
Lithuania
Greece
Croatia
Spain
Ireland
Poland
Czech Republic
United Kingdom
Activity rate
54–74 years old as a % of 25–49 years old
Netherlands
Malta
Cyprus
Italy
Switzerland
Austria
Norway
Latvia
Estonia
Belgium
Denmark
Bulgaria
Germany
Part-time incidence
%
France
R
2
= 22%
Continental 
Europe
United Kingdom 
and Ireland
Central and 
Eastern Europe
Southern 
Europe
Baltics
Nordics

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86
McKinsey Global Institute
4. Making independent work a win for all stakeholders
US survey respondents in traditional jobs who reported experiencing a recent bout of 
unemployment. In Europe, 24 percent of total independent earners and 34 percent of 
those who are independent out of necessity reported a bout of unemployment in the 
past year vs. 8 percent in the case of traditional workers. 
Providing a way for the unemployed to work is especially important in Europe, which 
suffers from a chronically high rate of long-term unemployment. Eurostat reports that 
almost 50 percent of the unemployed in EU-27 were not able to find a job for more than 
12 months at the end of 2014, while the long-term unemployed amounted to less than 
half that share of overall unemployment in the United States, according to BLS data. 
Independent work could be a way to put more young people to work in countries where 
youth unemployment is high, enabling them to start on a career ladder. 
Overall, enabling the unemployed to keep earning increases the number of hours worked 
in the economy, adding to GDP. But policy changes will be needed in some countries 
to align incentives, as unemployment benefits are often sharply reduced or ended 
altogether when a recipient starts earning.
 
ƒ
Increasing capital productivity.
 A small but growing share of independent earning 
involves renting out assets. In theory, this should improve capital productivity as 
underutilized assets and spare capacity are put to work—and digital platforms improve 
this capability by adding detailed, real-time information that can make a step change in 
utilization. For instance, by bringing together individual property owners with travelers 
visiting a destination on a specific date, who want specific amenities, and who have 
a clear budget in mind, platforms such as Airbnb, VRBO, FlipKey, and HomeAway 
monetize assets that might otherwise sit empty, unlocking new types of fractional 
capacity in the economy. Similarly, the average car is parked more than 95 percent of the 
time, but platforms such as Turo, Getaround, Uber, and Lyft can increase the utilization 
of idle vehicles—even beyond what traditional dispatching and cruising the streets 
achieved in offline transportation companies. These sharing economy platforms are now 
expanding to many other types of assets: photography equipment, private jets, boats, 
clothing, and office space. 
 
ƒ
Increasing labor productivity. 
It is also possible that a shift to independent work could 
raise labor productivity, although there are also some offsetting effects. A potential 
Exhibit 30
SOURCE:  McKinsey Global Institute analysis