DISPATCHES FROM THE NEW ECONOMY:
THE ON-DEMAND WORKFORCESECOND ANNUAL REPORT, FEBRUARY 21, 2017
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From delivery, transportation and household errands, to professional services and consulting, the on-demand economy is not only changing the way people consume goods and services, it’s also changing the way millions of Americans work. With incredible flexibility and stunning ease-of-entry, this new economy is empowering a new generation of entrepreneurs. In an updated forecast by Intuit and Emergent Research, the number of people working on-demand jobs will grow from 3.9 million Americans to 7.7 million in 2020, and an impressive 9.2 million by 2021.
In 2015, Intuit kicked-off a research project in partnership with Emergent Research and eleven on-demand economy and online talent marketplace companies to gain a deep and objective understanding of the motivations, aspirations and pain points of individuals choosing on-demand jobs. In the latest study, new findings reveal that the on-demand economy has taken on a key role in improving the financial stability of people looking for flexible opportunities to supplement income.
INTRODUCTION
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METHODOLOGY
For this study we surveyed 6,247 people who find work via an on-demand platform that connects service providers with customers.
People working via the following platforms are included in this report:
• Amazon Mechanical Turk, Avvo, Catalant, Field Nation, Kelly Services, Lyft, MBO Partners, OnForce, TaskRabbit, Upwork, Wonolo, Work Market
Results weighted to reflect the proportion of providers in each of the following segments:
• Drivers/Delivery• Online Talent Marketplaces• Field Service/Onsite Talent
The overall 2016 results are statistically consistent with the 2015 results. 2
EXECUTIVE SUMMARYPeople engaged in on-demand work are looking for flexible opportunities to smooth out unpredictable income, while also testing ways to build a secure financial future:• On-Demand Work is Used to Supplement Existing Income: The average person
working an on-demand job spends 11 hours per week, and earns 24 percent of their household income via on-demand work. Forty-one percent also have a traditional full-or part-time job.
• On-Demand Work Fills Near-Term Financial Needs: Sixty-six percent of people working on-demand report having variable monthly income. Forty-one percent say that a financial hardship – such as a job loss, medical problem, or unexpected major expense – impacted them during the prior year. By contrast, just 18 percent of all Americans in a recent U.S. Federal Reserve survey reported encountering a financial emergency.
• On-Demand Work Is Used To Build A Sustainable Future: Many people are leaning on on-demand economy work to either develop a new business or supplement and expand an existing business Thirty-seven percent already own a business, and 21 percent want to build a business.
• There is General Satisfaction With On-Demand Work: 38 percent of people working in the on-demand economy say they are better off, while only 14 percent feel they are worse off. Eighty-one percent plan to continue working an on-demand job over the next 12 months, and 67 percent of people are satisfied with their on-demand work.
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REASONS FOR WORKING IN THE ON-DEMAND ECONOMY
Want to try something new57%
Want to earn more money/supplemental income
46%
Want to create and control my own schedule
35%
Want greaterwork/life flexibility
32%
Want to be my
own boss
32%
Want to make up for a financial hardship
21%
Want another source of income while looking for work
19%
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On-demand economy providers report working an average of 37.3 hours per week with about 11 hours per week working for their primary on-demand economy partner
of on-demand economy providers have either a
traditional full-time job (27%) or part-time job (14%) in
addition to their on-demand economy work
41%33% Work with another on-demand service provider that connects me with customers
26% Employed in a traditional full-time job (receive a W-2)
26% Run my own business and have no employees
19% Care for my family
14% Employed in one or more traditional part-time jobs (receive a W-2)
13% Sell goods in online marketplaces
11% Run my own business and have at least one employee or partner besides myself
9% Full- or part-time student
5% Work through a temporary or talent agency
5% Retired
5% No other sources of income
Additional Activities Workers Currently Engage In
ON-DEMAND ECONOMY PROVIDER INCOME
5
24%
ON-DEMAND ECONOMY PROVIDER INCOME
The average gross income from an on-demand economy provider over the past 12 months is $12,100.
Average percentage of household income generated by on-demand work
$ $ $ $
Reported hourly earnings ranged from $5 to $61 with an average of
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20%
36%
26%29%
Top Hardships On-demand work has improved the financial position for many on-demand economy providers
Much better off
Somewhat better off
About the same
Somewhat worse off
Much worse off
9%
29%
48%
10%
4%
1 in 5 turned to on-demand work due to a financial hardship.• 41% reported experiencing a financial hardship over the past year • 51% said the financial hardship was the primary reason (19%) they are working
independently or one of the reasons (32%)
31%
Unexpected Major Expense
JobLoss
HealthEmergency
Work Hours Cut
Almost one third of online on-demand economy providers who also have full-time jobs say they see their on-demand work as a backup in case something happens to their regular job
Many people are turning to flexible on-demand work to weather financial challenges, such as:
ON-DEMAND ECONOMY IMPROVES FINANCIAL STABILITY
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Highly variable income
Income varies quite a bit month to month and is unpredictable
Income varies quite a bit month to month but is predictable
Income roughly the same but some months unusually high or low
Income more or less stable
24%
14%
28%
34%
Limited financial reserves
44%
34%
Said the largest emergency expense they could pay without borrowing was less than $400
Have No Retirement Savings
Lack of health coverage
24%
26%
Do not have health insurance
Did not get medical treatment during the past year because they couldn’t afford it
Many people are turning to flexible on-demand work to weather financial challenges, such as:
ON-DEMAND ECONOMY IMPROVES FINANCIAL STABILITY
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BUILDING A BUSINESS IN THE ON-DEMAND ECONOMY
37% own a business
21% want to build a business
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I always wanted to be my own boss
I do not like having to answer to a boss
I will not go back to relying solely on a traditional job
Previous employers have not recognized the value I offered
I would rather hava a traditional job than be my own boss
Strongly / Somewhat agree Neutral Strongly / Somewhat disagree
20%71% 9%
30%53% 17%
25%50% 25%
24%47% 29%
24%15% 61%
Many have a desire to run their own business or be their own boss, and are leaning on on-demand economy work to either develop a new business or supplement or expand an existing business.
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SATISFACTION AND RELATED ATTITUDES
50%
Highly Satisfied
17%
Satisfied
23%
Dissatisfied
like controlling when, where and how they work.91%
On-demand economy providers report being happier and enjoying the flexibility of their on-demand jobs.
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ON-DEMAND ECONOMY PROVIDER CHALLENGES
62%
53%
41%
Getting enough work
Unpredictable income
Unfair pay
The growing number of workers providing the same service
Lack of job security
Lack of benefits/health insurance
Top Challenges
31%
27%
21%
36%
Probably
3%
Probably Not
45%
Definitely
15%
Might/Might Not
81%would like to
continue working in the on-demand economy
47%would like to
increase their work
34%would like to keep
their work the same
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FUTURE PLANS
Will on-demand economy providers continue working with their primary on-demand economy partner 12 months from now?
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ON-DEMAND ECONOMY PROVIDER DEMOGRAPHICS
Men
White African American Hispanic Asian/Pacific Islander / Indian sub-continent
Other
Women59%
64% 11% 9%7%
41%
Gender
Marital Status
Age
Education
Ethnicity
42 40Average (years)
Children/grandchildren in household
Median (years)
34%
Married
Not married and not living w/partner
Not married, but living w/partner
Divorced
Separated
Widowed
Millennials: Aged 18-34
Gen X: Aged 35-51
Baby Boomers: Aged 52-68
Seniors: Aged 69+
High school or less
High school degree / GED
Some college or 2-year degree
4-year college degree
Graduate or professional degree
Other
47%
24%
12%
9%
2%
1%
35%
41%
24%
1%
1%
7%
30%
31%
28%
2%10%
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CONCLUSION
The on-demand economy is accelerating the move toward self-employment and is having a transformative effect not only on our economy, but also on the way millions of Americans live.
At Intuit, we're committed to empowering people to take advantage of the positive opportunities the on-demand economy provides. We're also committed to building new tools and supports to deliver stability for the growing self-employed workforce.
It’s time to look ahead with an informed and productive discussion about the future of work.