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Boston Globe: Making gig drivers employees could result in major job loss, study finds

Excerpt: Uber and other gig-economy companies are forced to make Massachusetts drivers employees, and they then require drivers to work at least 20 hours a week on average, between 49,000 and 74,000 job opportunities across four major ride-hailing and food-delivery platforms could be lost, a drop of 58 to 87 percent, according to a study commissioned by a coalition representing the four tech companies.

The job losses — which equate to the number of drivers no longer able to earn money on each individual platform, with one person potentially accounting for multiple jobs — are the result of fewer drivers working longer hours and a drop in demand if customer prices increase to cover the costs of officially employing drivers.

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Date: 03/03/2022
Category: Flex Insights