#91: Classification Proposal Leading To Increased Inflation, Freelance Economy Ahead of Schedule, How To Make An Impact With Rich Wilson of Gigged.AI
It's a scary time as the Biden Administration proposes a freelancer killing bill that can rocket ship inflation and put the US 50 years behind.
Leaders,
The ‘80s called and it wants it’s inflation and controlling work back.
I wish I was kidding, but you’ll see why after this sh** sandwich of an update.
🚨 Emergency - Updated Classification Laws
On Tuesday the Labor Department released their proposal to clarify when workers should be classified as employees rather than independent contractors (*it’s a 184 page doc 🤯).
As Jason Calacanis said, “you have old school Democrats in, who are very pro Union, they’re kind of living in the 1950’s…they are dictating people how they work, and where they work.”
Key things you need to know:
This puts the US significantly behind as countries like the UK are repealing their equivalent law IR35 and making it easier to work with freelancers.
The added requirements make it illegal to be a good freelancer or start freelancing.
This nationalizes what California did in 2019, even though the results are enterprises stopped hiring freelancers from their.
To put it blunt, this is terrifying.
The Freelance Economy Won’t Stop, The US Will Just Be Left Behind
Perfect timing Jon…
A couple excerpts stood out:
40% of full-time employees in the US have a side-gig
90% plus of corporate leaders in a recent global survey said they utilize freelancers and say they will increase their reliance.
During the current recessionary period, almost 80% of employers say they are increasing their use of freelancers as they suspend full-time hires.
Getting Rid Of Freelancers Will Only Drive Inflation
Current inflation is obviously bad.
But the current classification laws will kick inflation into hyper drive.
Playing it very conservative, currently 20-65% of companies are contractors. On average these contractors save 20-30% per employee. You do the math on the impact if contractors need to become employees.
*cost efficiencies in freelancers compared to traditional staffing is 50-90%
🙌 To Rich Wilson of Gigged.AI For Showing Why The Freelance Economy Is A Force For Good
We’ve given some bad news huh?
Well this should melt your heart! Rich Wilson, founder of freelance marketplace Gigged.AI recently posted about sponsoring his son’s soccer team.
While this is beyond cute, it’s an example of how the freelance economy unlocks two things:
You can live where you choose
You’ll earn more than the average employee
This means you can invest in your community, whether it be money or time, just like Rich!
Stats To Copy/Paste
Freelancer Related
According to MBO’s The Great Realization
Number of Freelancers grew 34%, from 38.2 million to 51.1 million.
68% of newcomers were Gen Z or millennials, and 55% of newcomers were female
66% of full time freelancers believe they are more secure than traditional workers
78% Say they are healthier working independently
According to Statista
by 2027, 86.5 million people will be freelancing in the United States, the research firm predicts, with freelancers making up 50.9% of the total U.S. workforce
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