Government intervention could severely hinder opportunities in the gig economy

By Philip Cross of The Fraser Institute.

• Despite widespread concerns that gig work is becoming a dominant part of our economy, most studies find it is not an important part of Canada’s labour market and its growth is embraced by most workers.
• There is no consensus on its precise definition, most research shows gig work involves less than 10 percent of the labour force.
• Moreover, most definitions of the gig economy—as with related concepts such as nonstandard and precarious work—include well-off people, such as self-employed professionals as well as people who prefer flexible work, such as truckers, dockworkers, students, and older people looking to supplement their incomes.
• Contrary to much of the rhetoric around this issue, many participants in the gig economy are attracted by its flexibility and freedom, rather than being forced into such jobs by a weak labour market.
• Current labour market data does not indicate the need for government intervention for gig work considering tenure has risen steadily, quit rates remain near historic lows, and surveys show most Canadians are content with their working conditions.
• Indeed, there is a risk such intervention could limit opportunities for affected people to earn extra income and remain active in the labour force.
• The disconnect between the relatively benign reality of Canada’s labour market and advocates who insist work is becoming more precarious reflects fundamental problems in the agenda for labour economics.