Get the Gig: Does Obamacare Free U.S. Workforce?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Feb. 7 (Bloomberg) -- Fabio Rosati, CEO at Elance, discusses the impact of the Affordable Care Act on self-employed workers and the freelance job market on Bloomberg Television’s “Market Makers.”

In its implementation.

What kind of an impact will it have on the job market?

We predict in a few years the american workforce will be 50% made of independent workers.

The affordable care act is going to simply make it possible for people to venture out and try different career paths that were not available before.

X 50%. how many years?

By 2020. what percentage of the american workforce is employed today -- self-employed today?

About a third.

How much of this increase that you predict by 2020 will be as an indirect or direct result of the affordable care act?

The freedom that people have to work knowing that they can get health insurance subsidized or unsubsidized by the government?

That is a great question.

There are many others.

The availability has been going on for a few years.

One of the other drivers is technology.

It is a lot easier for someone today to find work using the internet, going online.

It is also a lot easier to get paid to using online marketplaces.

It is a lot easier for businesses to connect with talent anywhere with a few mouse clicks.

We're seeing in a combination of the infrastructure and technology and health care all contributing to this shift of work and contingent labor online.

What about the kind of work that people will be doing as a result of technology on the one hand and the affordable care act on the other?

How is the nature going to change?

Absolutely.

That is another major driver of the shift.

A lot of the work is anything you can do in front of the computer, knowledge work.

Ranging from market research to creative work like writing and creating wonderful designs.

Analyzing data.

All of this is becoming a much bigger piece of our economy.

It is naturally easier to do the work from anywhere.

It is easier to do the work anywhere and anytime you want.

How much of this work is available?

How many of these people legitimately are full-time employees, fully self-employed?

Today about a third of the 10 million people that are working on the platform, about a third are full-time freelancers.

Another third are moonlighted as.

They have a full-time job.

They are supplementing their income by taking gigs online.

Then there is another third to of other things in life such as retirement or studying or raising children.

The are supplementing their income.

So far this model is really mimicking what we see naturally happening through the temporary labor market except that it is moving online just like commerce started to move online about 10 years ago.

There's much angst over the kind of jobs at the u.s. economy is creating.

Not enough high-paying jobs.

Not enough full-time jobs.

Not enough dots with some form of protection.

Clearly there is no form of rejection and self employment.

Are there higher wages?

Tell me what you see.

Are people making more money working from themselves than they might if they went out into the workforce and try to get a full-time job working for someone else?

The data is fascinating.

It is counterintuitive.

We have been studying trends for many years.

In the last year, the average hourly rate for u.s. workers on a platform -- on our top form has increased by 4% versus an american wage average for employers increasing only 1.8%. the average hourly rate on our platform is $33. that is significantly higher than the average rate wage for the u.s. worker.

What is the business model they are?

Of the $33 and hourly earnings that the average person on e-;lance, how much comes your company?

Eight and three quarters percent.

Is that hired why the company?

It is a markup model.

A freelancer chooses the rate a what to pay.

They decide how much money they want to charge the client.

We market up by eight and three quarters percent.

We add our fee on top of it.

The client sees a complete price option for the work, pays us.

We keep our share and deliver the payment to our freelancers.

What the client sees is the taxes included effectively.

Exactly.

How would an increase, do you think an increase in the minimum wage effect the job market you are involved in?

We see that as a positive.

I do not think it will have a direct impact on our market in the sense that our freelancers tend to control their own wage based on their reputation and their perception of supply and demand which is a fascinating way to think about it.

Everyone at the real answers use themselves as businesses of one.

Bear in the best position to decide how much they want to work in how much they should get paid.

In a moment when their services are in high demand, they may increase their rates.

In a moment when they see a lull they may lower them.

It is entirely their decision.

I do not think this will impact the type of work that gets done.

In general, it is a good thing.

Great to have you.

If you very much.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change