Report: Gig economy 'can lower entry barriers to the labor market' for individuals challenged to work traditional jobs

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Ride-hailing services such as Uber are opening the door to employment for many whose life circumstances prohibit traditional jobs. | Paul Hanaoka/Unsplash

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Uber, like many other gig economy work opportunities, has low barriers when it comes to getting a job. It allows most people to obtain employment without needing special skills.

"I found out about Uber through a friend who was already driving, and he was making a recommendation to me," Uber driver Isaac King III said. "He shared how much he was making over the weekend. I needed a vehicle for my family, and I was like, you know, I could buy a car with what he's making on the weekend. So I decided that I would drive so that I could purchase a car and replace my previous part-time income by driving with Uber."

King was also surprised and pleased that there was an opportunity for him to obtain his own vehicle that can be used for his gig work and resolve one of his wife’s challenges.

"They have a partner program with dealers," King said. "I went to one of the dealers that was a part of their partner program. And it turns out that the dealership was willing to finance me. And I purchased a Toyota Camry and was on the road within a week. My wife had been borrowing her parents' car for grocery shopping, and she was really wanting to use her own car and not have to keep asking. So that was a win for both of us. I work full time during the day, so she could do what she needs to do during the day. And I drive for Uber in the evenings and weekends."

Forbes reports that 84% of full-time freelancers say that they are able to live the lifestyle they want because of their work as opposed to only 63% of full-time traditional workers. Another 42% said they would not be able to work a traditional job due to life circumstances. 

Digital labor platforms "can lower the entry barriers to the labor market, facilitate work participation through better matching procedures and ease the working conditions of specific groups (i.e. workers with strong family commitments, people with disabilities or health conditions, youth, people not in education, employment or training – NEETs–  older workers, retired, long-term unemployed, people with a migrant background)," according to Valeria Pulignano in her "Work and Employment Under the Gig Economy" paper.

Upwork reports that about 12% of the U.S. workforce began taking gig work during the pandemic. The most frequently stated reasons that these workers give for starting freelance jobs include financial stability during the recession (75%) and necessity (54%). 

A 2018 poll from Gallup showed that independent gig workers enjoy high levels of work-life balance, flexibility, autonomy, meaningful feedback and creative freedom. According to the study, "they score much higher on all these factors compared with traditional workers and other types of gig workers."

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