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Gig Economy Growth Is Outpacing Traditional Employment Gains

Freelance, contract, and platform-based work now accounts for a record share of American labor market activity.

Gig Economy Growth Is Outpacing Traditional Employment Gains

More than 58 million Americans performed some form of gig or freelance work in the past year, according to a new survey by MBO Partners. The growth is being driven by both worker preference for flexibility and employer demand for variable-cost labor as economic uncertainty discourages permanent hiring. Platform companies including Uber, DoorDash, and Upwork have collectively added 4 million new active workers in the past 18 months.

The policy implications are significant. Gig workers are generally not covered by traditional employment benefits including health insurance, paid leave, and unemployment insurance. Several states are attempting to expand benefit portability to cover gig workers, but proposals face intense opposition from platform companies that argue mandatory benefits would undermine the flexibility that makes gig work attractive.

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