Independent-Work-Choice-necessity-and-the-gig-economy-Executive-Summary

WHAT STILL NEEDS TO BE DONE?

POLICY MAKERSCollect better data Address gaps in worker protections, benefits, and income security

INNOVATORSExplore opportunities to create new marketplaces and tools

ORGANIZATIONSConsider how digital technologies allow you to utilize external talent

INDEPENDENT WORKERSThink like a business Develop differentiated skills

THE INDEPENDENT WORKFORCE

Independent workers make up

of the working age population

In the United States and the EU-151

this is up to people

of independent workers have used a digital platform

The DEFINING FEATURES of INDEPENDENT WORK:

70%

15%

20–30%

162 million

DIGITAL PLATFORMS DIGITAL MARKETPLACES• Larger pools of supply and demand

• Easy to join, easy to use• Payment systems and infrastructure

• Profiles, reviews, and transparent information

• Better search and matching

High level of control and autonomy

Payment by task, assignment, or sales

Short-term duration

Out ofnecessity

Preferredchoice

Primary income Supplemental income

“Free agents”

“Reluctants” “Financially strapped”

“Casual earners”

30% | 49 million 40% | 64 million

16% | 26 million14% | 23 million

1 Results from UK, Germany, France, Spain, and Sweden scaled up to EU-15.

8 McKinsey Global Institute Executive summary

FOUR SEGMENTS OFINDEPENDENT WORKERS

PRIMARY INCOME

PREFERRED CHOICE

NECESSARY CHOICE

SUPPLEMENTAL INCOME

“Independent work is my ...”

FREE AGENTS

RELUCTANTS FINANCIALLY STRAPPED

CASUAL EARNERSDerive their primary income from independent work and actively choose this working style

Example: A self-employed plumber or a chiropractor in private practice

Example: A hobby crafter who sells scarves or a professor who gives paid speeches

Example: A janitor who doubles as a housepainter on the weekends

Example: A short-term temporary worker who would prefer a more permanent job

Use independent work to supplement their income and do so by choice. Some have traditional primary jobs, while others are students, retirees, or caregivers.

Do independent work to supplement their income but would prefer not to have to do side jobs to make ends meet

Derive their primary income from independent work but would prefer traditional jobs

SUPPLEMENTALINCOME

OUT OFNECESSITYPRIMARY INCOME

(millions) (millions)6868

54%

46% 42%

72% 68%

28% 32%

58%

9494 100%

BY CHOICE

THIS SEGMENTATION VARIES SLIGHTLY IN THE UNITED STATES AND THE EU-151

1 Results from UK, Germany, France, Spain, and Sweden scaled up to EU-15.

9McKinsey Global Institute Independent work: Choice, necessity, and the gig economy

Primary

By choice

Out ofnecessity

Supplemental

FREE AGENTS22 million | 32%

RELUCTANTS10 million | 14%

FINANCIALLY STRAPPED

9 million | 14%

CASUALEARNERS

27 million | 40%

46% 54%

28%

72%

UNITED STATES68 million independent workers

Primary

By choice

Out ofnecessity

Supplemental




2 million | 14%

CASUALEARNERS

6 million | 42%

44% 56%

26%

74%

UNITED KINGDOM14 million independent workers

Primary

By choice

Out ofnecessity

Supplemental




3 million | 21%

CASUALEARNERS

5 million | 39%

39% 61%

32%

68%

FRANCE13 million independent workers

Primary

By choice

Out ofnecessity

Supplemental




4 million | 19%

CASUALEARNERS

9 million | 42%

39% 61%

30%

70%

GERMANY21 million independent workers

Primary

By choice

Out ofnecessity

Supplemental


RELUCTANTS<0.5 million | 13%


<0.5 million | 13%

CASUALEARNERS

1 million | 41%

46% 54%

26%

74%

SWEDEN2 million independent workers

Primary

By choice

Out ofnecessity

Supplemental




2 million | 20%

CASUALEARNERS

4 million | 32%

48% 52%

42%

58%

SPAIN12 million independent workers

SOURCE: McKinsey Global Institute survey. Numbers may not sum due to rounding.

Independent-Work-Choice-necessity-and-the-gig-economy-Executive-Summary

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