Illuminating the Shadow Workforce: Insights into the Gig Workforce in Businesses
What is it measuring?
ADP estimates the number 1099 independent contractors and short-term W2 employees, using data from companies that use ADP HR management software. Data also speak to the industries, demographics, income, benefits, and motivations of these workers.
What does it tell us?
From 2010 to 2019, the share of 1099 and short-term W2 workers grew from 14.2 percent to 16.4 percent of workers hired. 1099 independent contractors tended to be older, have more formal education, and receive higher earnings. Short-term W2 workers tended to be younger, have lower levels of educational attainment, and receive lower earnings. More than 70% of 1099 independent contractors reported that they independently by choice rather than inability to find standard W-2 work. Less than a third of 1099-MISC workers purchase individual health insurance plans, yet overall, 89% of gig workers are covered under insurance plans (from a spouse or through Medicare/Medicaid).
How is it collected?
ADP utilized three sources of data: 1) administrative payroll data from 75,000 large companies employing over 18 million workers collected between 2010 and 2019; 2) a two-stage online survey of 16,800 workers; and 3) interviews with 21 business decision makers.
Who collects it?
ADP Research Institute. which is a research branch of ADP, a provider of human resources management software and services in the U.S.
Considerations
The use of administrative payroll data provides comprehensive information about the direct hiring practices of companies. However, this data excludes app-based workers, because gig platform companies typically do not use payroll software. In addition, subcontracted workers would appear as employees of their agencies, and would not be included in the definition of gig work.
How to access this data?
Privately held by ADP
Reports
Illuminating the Shadow Workfore: Insights Into the Gig Workforce in Businesses; 2020; ; ADP;