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BREAKING NEWS

How much Uber drivers actually get paid
May shock you

May 21, 2018




CLICK TO ENLARGE
(NATIONAL) – Would you be surprised to know that Uber drivers – the leading edge of the “gig” economy (read that: sub contractor, no/few benefits, no unemployment pay) – make less than 90% of the workers in this country?

In a new report from the Economic Policy Institute, Lawrence Mishel analyzes Uber driver compensation and looks at the scale of Uber relative to the overall economy to get a sense of how important the “gig economy” really is.

Mishel estimates that, after accounting for Uber’s commissions and fees, vehicle expenses and a modest benefits package, Uber drivers earn the equivalent of $9.21 in hourly wages.

He also finds that, after accounting for the fact that most Uber drivers drive part time and for only part of the year, Uber drivers add up to just 90,521 full-time, full-year equivalent workers, or 0.07 percent of overall national full-time, full-year equivalent employment.

Given that Uber is roughly two-thirds of the gig economy, this means that gig work accounts for 0.1 percent of national employment.

In a synopsis Michel writes:

‘The findings reinforce our skepticism that Uber, and “gig work” more broadly, represent the “future of work.” Our results indicate that Uber drivers earn low wages and compensation and the total hours and compensation in the gig economy represent a very small share of total hours and compensation in the overall economy.

These findings—and the fact that many Uber and other workers who provide personal services via a digital platform do so on a part-time basis primarily as a way to earn supplementary income...there has been much hype around Uber and the gig economy. But in our assessment, in any conference on the future of work, Uber and the gig economy deserve at most a workshop, not a plenary.’

Read the full report here .







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