Week of December 2, 2018 — This Week in the Gig Economy
In this publication of This Week in the Gig Economy, we’re covering topics ranging from the large trends in the Global Labour Market, and the latest developments with large gig economy companies. Without further ado:
Gig Economy Developments
Uber and Lyft file for an IPO — Airbnb and #Slack to follow
Ride-hailing rivals are ready to test investor’s appetite for it's ishigh-profile but, loss-making technology companies. Lyft, which valued at $15 billion, didn’t specify the number of shares it was selling or the price range for the offering. Uber, the market leader, which is currently valued at $76 billion could be worth $120 billion in an IPO. It's filing set the stage for one of the biggest technology listings ever. Airbnb and Slack are also expected to go public next year. Ongoing market volatility, however, could alter companies’ plans.
Uber and Lyft drivers to get minimum wage in NYC
New York City is leading the way in cutting through the companies' hype. The city is demanding that drivers-without whom Uber and Lyft won’t exist-should get at least minimum wage. Taxi and Limousine Commission(TLC) voted on a minimum wage formula for all the ride-hailing companies in the city. Drivers will earn $17.22 per hour which is equivalent of $15 per hour after accounting for payroll taxes and also, the fact that they don’t receive vacation pay. The move, which will go into effect in 30 days, is expected to raise the average driver’s pay by $9,600 per year, according to the proposal. Critics — including the ride-hailing companies say that it will make it difficult for passengers to get around. They are urging TLC to reconsider it.
Don’t call me Uber — Jordan O’Reilly, Hireup co-founder, and CEO
Jordan and his sister Laura founder Hireup in 2015 after an experience with a close family member opened their eyes to shortcomings in the homecare and disability support sector. Since then, the company has won many national awards and is growing like crazy. One thing O’Reilly is clear about is that his company is not “Uber of disability”.
“Emerging models don’t have a sophisticated vocabulary for describing them, and its comparison to other companies often doesn’t help people understand how we work,” O’Reilly tells SmartCompany
One of the reasons for that is also because unlike many on-demand companies, they don’t use the independent contractor model. “We use an employment-based model and employ all workers properly. We pay super, tax, award rates, and we treat them like you’d treat employees in any traditional business,” the 30-year-old founder says.
To date, O’Reilly says Hireup has facilitated over 1.5 million hours of support, with over 50,000 registered users.
Trends and Labour Market Updates
Canada adds record # of Jobs — unemployment rate hits an all-time low
Statistics Canada reported on Friday a gain of 94,100 jobs in November, driven by the gain in full-time work. Full-time jobs increased by about 89,900 and part-time employment rose by about 4,100. The unemployment rate dropped to 5.6%, the lowest it has ever been since 1976. This report will provide some relief for Bank of Canada Governor Stephen Poloz, who said on Thursday that economic data since October had been disappointing.
The U.S adds 155,000 jobs, unemployment stays at 3.7%.
According to the US Bureau of Labor Statistics (BLS) stated that the employment rose by 155,000 in November in its monthly jobs report. Temporary help services employment rose by 0.3% from the prior month, adding 8,300 jobs, and the temporary staffing penetration rose to a record 2.06%. Check out the detailed analyses here by MSNBC.
The way we work has changed — the future is here
Not too long ago, we all use to read articles talking about the future of work in 2020, now its right around the corner. Technology advancements have changed and, re-defined the way we do everything including work. Fuze — the leader in Enterprise Global Voice, Video, Messaging, and Collaboration has released a recent Workforce Future report that has uncovered some fascinating statistics.
Here are the highlights from each section of the report:
- Work-As-A-Service (WaaS): In the last 10 years, there’s been a fundamental shift in the world of work. The concept of work as being ‘what we do’ rather than ‘where we are’ is now firmly cemented in the modern consciousness, driven by millennials and the generations who have followed.
- The World Is Your Office: The role of company office is in the spotlight, as the technology increases the possibility to work from everywhere. Death of company office? Not yet, given a choice in where they work, a significant 93% of employees would continue to incorporate some time at the main company office into there working week.
- The EmployME: The impact of the rise of artificial intelligence (AI), machine learning, augmented reality and automation doesn’t have to be negative. This wave of machine-led technologies has the potential to unleash our trait of exclusive creativity, collaboration, and communication — it will define the new workforce
Dominic Kent, from UCToday, spoke to the Fuze’s Product Marketing Manager, Bradlee Allen to run over some key findings and, discuss his view on how much the gig economy is impacting businesses. He also touches on how to understand the boundaries between working in the office 9–5 and, being a fully remote worker.
Enjoy his full article here :)
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