By Aj Hess
The labor market ended 2023 on a quiet note. The most recent Job Openings and Labor Turnover report suggested the number of open jobs, and the number of people quitting their jobs, fell slightly in November. The final jobs report of 2023 revealed that employers added 216,000 jobs (more than expected) and unemployment held firm at 3.7% in December.
However, the past several years have been marked by much louder landmark moments in the labor force. For instance, many will remember 2020 as the year they went into lockdown and learned how to work remotely—or learned how to manage the risk of working alongside coronavirus. And 2021 will likely be known as the year of the Great Resignation; 2022, the year many workers were forced to return to the office.
Perhaps 2023 can best be described as a year of tug of war between leaders and workers. Many CEOs experiencing productivity paranoia threw tantrums to try to force more workers back into office. Meanwhile, more than half a million Americans went on strike to push for better pay and working conditions. And after years of the CEO-to-worker pay gap steadily expanding—CEOs at the top 350 U.S. firms earned 399 times what the typical worker earned in 2021—many workers are aware and angry about the inequality in their workplaces.
Of course, it is impossible to predict the future, but here’s what may be in store for workers in 2024, according to experts:
IN: CONTRACT WORK
In the year ahead, the gig economy is expected to grow. This means we can expect even more gig workers, freelancers, and consultants in 2024.
According to McKinsey, approximately 36% of Americans are independent workers—up from 27% in 2016. And according to the World Bank, demand for online gig work has shot up 41% between 2016 and the first quarter of 2023. And Dan Ives, senior equity research analyst at Wedbush, recently told Fast Company’s Jessica Bursztynsky that we will experience a “golden age for the gig economy in 2024.”
One reason for the expected expansion of the gig economy is because the demand for services like Uber, Lyft, and Taskrabbit remains high. Meanwhile, many traditional industries like IT, healthcare, and legal services are increasingly working with contractors and consultants to lower their labor costs. What’s more, in the face of rising inflation, more workers are taking on side gigs to make ends meet.
While there are certainly many challenges facing contract workers, a recent wave of legislation at the state and city levels is establishing minimum wages, better protections, and more benefits for non-full-time workers. Continue reading →
