Wall Street Journal, Josh Zoom, United States discussed on This Morning with Gordon Deal
Apparent over the past couple of years? Two three four years is that this story was really overblown. And in fact, the US labor market hasn't changed nearly as much as people feared. So where did the studies miss? There's two things one is that the. What is it? The economy was really quite weak in twenty you know, the LeBron Michael is really quite weak in the early part of this decade. And so a large number of the people who were doing gigs. We're actually doing it just because the economy was with temporarily week they weren't doing it because the nature of people with work vino was fundamentally changing it's just that when the economy's bad when people lose their jobs, or when they're not seeing the income growth that they want and need they're more likely to turn to alternative stuff. And then the economy gradually improved. They turn away from it. So, you know, I m- one reason this looked so overblown is because people didn't realize the extent to which it was a cyclical phenomenon that when the economy is really bad. It's natural that people turned to gigs. It's not a fundamental change in the US labor force. It's gonna continue after the economy kinda heels, and you know, now, you look at the labor market, and it's it's much healthier. And when you look at kind of the majors of the gig economy. Looks like they're much smaller as a result. Okay. We're speaking with Wall Street Journal economics reporter, Josh zoom Brin has pieces called how estimates of the gig economy went wrong. So the gig economy stuff, I'll summarize in layman's terms, you turn to the gig economy when you're looking for a few extra bucks when you're in retirement and looking for something else to do things along those lines when you're when you're desperate for a few bucks. Yeah. I think that's right. I mean, the a lot of the people that turned to the gig. They just kind of did it as a temporarily at a temporary stopgap, they were they'd hit a little bit hard times until they you know, they tried something out to to make ends meet until they could get that traditional job. And then what we've seen is, you know, over the last two three years, especially people are getting those traditional job it. It's not the case in employers. Don't wanna have employees anymore. That was the fear that people had that every employer was gonna wanna just use app to temporarily stop its workforce. That wasn't the case. It just looked that way a little bit. Because of how the economy was what about the the lack of benefits the I mean that would that's a big reason that I think a lot of Americans were one worried about a transition to the gig economy, and you know, to why there was much or why there was why people wanted to get away from those jobs once they had the opportunity to do it, you know, in Syria. It'd be great to earn a few bucks. When you have, you know, the free time. But when that doesn't come with health insurance doesn't come with sick leave, you know, that's not very attractive to people. And so, you know, it makes sense that people wouldn't want the labor market to necessarily go that direction on a on a really extensive basis. What about the fix ability of this? It's going to be very hard to fix for a lot of reasons. I mean, one is because this work by its nature can be pretty nebulous. It can be pretty temporary. You know, people can do it just on on on the weekend. They can do it if you weaken year, they could do on busy weekends, but not normal weekends. I mean, there's going to be. Challenges measuring the extent of this activity. Josh Wall Street Journal economics reporter, Josh zoom. Brin? It's twenty minutes now in front of the hour on.