Understanding and supporting the on-demand workforce: white paper

As governors and states address the challenges posed by the changing present and future of work, they must account for altered relationships between workers and those who compensate them. New practices and technologies are challenging the ways work and employment are described and defined. New terms - the 'gig economy,' 'gig workers,' 'independent economy,' '1099 economy' and 'freelancers' - are increasingly in use. A common thread among these terms is the on-demand nature of the work they describe. To better prepare their states for this workforce of the future, governors recognize the need to better understand these evolving realities and the underlying trends that have brought them about. A growing body of research indicates that as many as one in three Americans are engaged in on-demand work. Many of these workers value the flexibility that such work affords, yet many would also prefer a formal job that provides a stable salary, benefits and workplace protections. Further, evidence suggests that some on-demand workers face economic instability and fewer pathways to economic security and lack access to many of the protections and benefits of formal employment.

Drawing on the findings from the member states of the National Governors Association Center for Best Practices' State Collaborative Consortium to Understand and Support the On-Demand Workforce, this white paper outlines the following issues: (1) Describes why this issue matters to governors; (3) Identifies key policy issues and opportunities for governors and states interested in supporting the on-demand workforce; and (4) Describes how effective state policies use the potential opportunities and benefits of on-demand work while mitigating the potential downsides and risks for workers.

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