01/12/2025

News

How the gig economy has grown in Southern California

Employment in Southern California’s so-called “gig economy” – workers who drive for Uber or Lyft, or run errands for the app Task Rabbit, for example – more than doubled between 2012 and 2014.

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Tracking the gig economy: New numbers

Platform-based freelancing is not yet substantially displacing payroll employment—but that could change. Despite the uptick in nonemployer contractors, payroll employment in “rides and rooms” industries has not declined during the last five years. Instead, payroll employment has increased in these industries, particularly in the passenger ground transit sectors.

Research & Studies
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The New War Between the States

Climate change increasingly marks a distinct dividing line. Manufacturing, moving goods, industrial scale agriculture, fossil fuel energy all consume resources in ways many progressives see as harming the planet. Progressives threaten these industries with increasingly draconian schemes to reduce greenhouse gas emissions. Gone are the days of supporting moderate shifts — which could work with some Heartland economies — from coal to gas and improving mileage efficiency.

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Steady August Labor Market Saw Dip in Job Openings

The labor market was showing few signs of acceleration and few signs of deterioration in August, according to the Labor Department’s monthly Job Openings and Labor Turnover Survey, known as Jolts. . . The drop can be largely attributed to a decline in openings for professional and business services, which saw the number of available jobs fall by 223,000 to 989,000.

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America’s Dazzling Tech Boom Has a Downside: Not Enough Jobs

“The technology revolution has delivered Google searches, Facebook friends, iPhone apps, Twitter rants and shopping for almost anything on Amazon, all in the past decade and a half. What it hasn’t delivered are many jobs. Google’s Alphabet Inc. and Facebook Inc. had at the end of last year a total of 74,505 employees, about one-third fewer than Microsoft Corp. even though their combined stock-market value is twice as big. Photo-sharing service Instagram had 13 employees when it was acquired for $1 billion by Facebook in 2012.”

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What Is the New Normal for U.S. Growth?

Estimates suggest the new normal for U.S. GDP growth has dropped to between 1½ and 1¾%, noticeably slower than the typical postwar pace. The slowdown stems mainly from demographics and educational attainment. As baby boomers retire, employment growth shrinks. And educational attainment of the workforce has plateaued, reducing its contribution to productivity growth through labor quality. The GDP growth forecast assumes that, apart from these effects, the modest productivity growth is relatively “normal”—in line with its pace for most of the period since 1973.

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The Two Gig Economies: One Happy and One Miserable

A new report from the McKinsey Global Institute released today adds to the body of evidence that the majority of independent workers actively sought out their arrangements and are happy with them, but a sizable minority is in the so-called gig economy reluctantly.

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Modest U.S. Jobs Growth Keeps Labor Market Steady

Employment outside of farms grew by 156,000 jobs in September, the Labor Department said Friday. That was the smallest gain since May, though it was a level that, if sustained, would deliver enough jobs to keep up with a growing population.

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Tesla seeks huge expansion in Fremont to add 3,000 more workers

Electric carmaker Tesla Motors Inc. wants to build 4.6 million square feet of new space for its factory in Fremont — a move that would ramp up production to 500,000 cars per year and add more than 3,000 workers.

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The State of American Jobs

The shifting demand for skills in the modern workplace may be working to the benefit of women. Women, who represent 47% of the overall workforce, make up the majority of workers in jobs where social or analytical skills are relatively more important, 55% and 52%, respectively. For their part, men are relatively more engaged in jobs calling for more intensive physical and manual skills, making up 70% of workers in those occupations. This is likely to have contributed to the shrinking of the gender pay gap from 1980 to 2015 given that wages are rising much faster in jobs requiring social and analytical skills.

Research & Studies
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Understanding the New Normal: The Role of Demographics

Since the Great Recession, the U.S. economy has experienced low real GDP growth and low real interest rates, including for long maturities. We show that these developments were largely predictable by calibrating an overlapping-generation model with a rich demographic structure to observed and projected changes in U.S. population, family composition, life expectancy, and labor market activity. The model accounts for a 1 ¼ percentage-point decline in both real GDP growth and the equilibrium real interest rate since 1980, essentially all of the permanent declines in those variables according to some estimates. The model also implies that these declines were especially pronounced over the past decade or so because of demographic factors most-directly associated with the post-war baby boom and the passing of the information technology boom. Our results further suggest that real GDP growth and real interest rates will remain low in coming decades, consistent with the U.S. economy having reached a “new normal.”

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Independent work: Choice, necessity, and the gig economy

The resulting report, Independent work: Choice, necessity, and the gig economy, finds that up to 162 million people in Europe and the United States—or 20 to 30 percent of the working-age population—engage in some form of independent work. While demographically diverse, independent workers largely fit into four segments (exhibit): free agents, who actively choose independent work and derive their primary income from it; casual earners, who use independent work for supplemental income and do so by choice; reluctants, who make their primary living from independent work but would prefer traditional jobs; and the financially strapped, who do supplemental independent work out of necessity.

Research & Studies
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Global Container Volume on Track for Worst Year Since 2009

Global container volumes are on track for zero growth this year, which would mark the sector’s worst performance since the 2009 economic crisis and a sure catalyst for further bankruptcies and possible acquisitions in the beleaguered shipping industry, shipping executives said.

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Varying Sick-Leave Laws Vex Some Employers

But the details of the rules differ on certain provisions, including which workers and their family members are covered and how much sick time they can accrue. And that is posing problems for some businesses, especially smaller ones, that employ workers in multiple cities and states, even if they support paid sick leave. As a result, human-resources departments—and the lawyers and consultants who advise them—are scrambling to make sure they comply.

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California’s housing shortage will hamper the economy, reports say

The state cannot continue to grow as fast as it has in recent years, said economists who wrote the reports, unless it funnels more people into the workplace. But there aren’t enough homes in the state to accommodate a wave of new workers.

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