Independent work: choice, necessity, and the gig economy



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Independent-Work-Choice-necessity-and-the-gig-economy-Full-report

30-50
%
share of the 
inactive population 
in the US and the 
EU-15 who are 
seniors


85
McKinsey Global Institute
Independent work: Choice, necessity, and the gig economy
 
ƒ
Providing work for the unemployed.
 For some, independent work is not a preferred 
choice—but it may be a lifeline. When individuals are thrust into unemployment, 
independent work can keep them afloat while they search for their next job. Having this 
kind of alternative readily available is critical for the millions of workers who may have 
traditional jobs but are in precarious financial circumstances. One study found a growing 
trend of people joining online labor marketplaces to offset temporary drops in their other 
income.
83
 
Our survey indicates that the unemployed are indeed using independent work as 
either a short-term bridge or a longer-term solution. In the United States, 27 percent 
of independent earners who were not students, retirees, or full-time homemakers 
reported experiencing unemployment or a period during which they were not earning 
income during the past year (Exhibit 30). The share was even higher (at 36 percent) 
among those who are independent out of necessity (the reluctants and the financially 
strapped combined). These shares are notably higher than the less than 15 percent of 
83
 
Paychecks, paydays, and the online platform economy: Big data on income volatility
, JPMorgan Chase 
Institute, February 2016.
Exhibit 29
SOURCE: Eurostat; McKinsey Global Institute analysis
Flexible work opportunities can boost labor force participation by seniors

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