Where has the labour gone?

3 million people are Door Dashers.

They average earning $26 per hour.

Depending which U.S. state you may work in, that is much better than the $10-$14 minimum wage.

I learned (in today’s quarterly earnings call) that 90% of Door Dashers work less than 10 hours per week.

This adds up to a lot of people if I extrapolate that across those who ‘host’ or clean AirBnB properties, drive for ride sharing companies, life coaches or any type of freelancer, who are not in ‘traditional’ work force.

After all, why would you work 40 hours per week doing a job that you don’t like and are required to answer to a boss or superior, when you can earn 60% of what you normally would, while working 70% less hours than your ‘previous’ life.

One example is where a local yoga teacher conducts an hour long session at a nearby park, charging $15 and 30 people show up.

$450 on Saturday and $450 on Sunday.

2 hours work

Cash.

Why would you want to wipe down restaurant tables and deal with customers?

Listening to the quarterly calls or reading the transcripts) of the ‘gig’ related companies may provide clues to when the labour market eases.

I think a good recession will fix the tight labour market.

Perhaps people working in the “gig’ economy may then start to reconsider flexibility and lumpy income for steadier climes and company health insurance?

Especially, if mortgage repayment stress rears its head.

November 4, 2022

by Rob Zdravevski

rob@karriasset.com.au