The Public Workforce Development System

As the centerpiece of the federal government’s workforce system, the  purposes of WIOA include the following: (1) provide individuals,  particularly those with barriers to employment, increased access to and  opportunities for employment, education, training, and support services to  succeed in the labor market; (2) provide America’s workers with the skills  and credentials necessary to secure and advance in employment with  family-sustaining wages; and (3) provide activities through the state and  local workforce development systems to increase the employment,  retention, earnings, and economic self-sufficiency of participants; among  other purposes. Studies of Gig Workers Suggest They Differ on Multiple Characteristics, and Stakeholders Describe Key Benefits and Downsides to Gig Work

		Studies of Gig Workers and the Types of Work They Perform Suggest They Differ on Multiple Characteristics

Because there is no universally accepted definition of gig work,  characteristics of individuals engaging in this work and the types of work  they perform depend on how this population is studied. Each of the three  quantitative studies we reviewed defined their population of workers, type  of work performed, and time frames of work performed differently. According to the studies we reviewed, up to about 40 percent of workers  engaging in online gig or informal work were 34 years old or younger. Online gig work included completing tasks that were identified  or mediated through online platforms. Officials from 10 of the 11 local workforce boards we interviewed said that  a lack of financial security was a downside to gig work. Federal Programs and Other Sources Offer Training in Self- Employment Skills That Stakeholders State Gig Workers Need

		Gig Workers Need Self- Employment Skills Such as Customer Service, Marketing, Digital and Financial Literacy, and Legal Skills, According to Stakeholders

Stakeholders we interviewed said that gig workers need various self- employment skills. In addition to soft skills, stakeholders said that gig workers need business  skills. In Chicago, the  workforce board recruited job seekers for a ridesharing company, and  some of them then used this work as an income source while they  received WIOA services, scheduling it around their WIOA training  activities, according to board officials. Officials from other boards, some of which were not included in our  analysis of board services for gig workers, expressed interest in studying  the gig economy. Despite these efforts to better understand gig work at the national level,  selected state and local workforce board officials said that they lacked  local labor market data on gig workers and that it would be helpful if DOL  shared information about other boards’ efforts to serve these workers. DOL disseminates information on promising practices, but boards may  not be readily able to find information related to gig workers. Linking “gig” and related terms to  self-employment may be particularly important because DOL officials  indicated that recent and soon-to-be issued evaluations from self- employment initiatives funded through the Workforce Innovation Fund  grants may yield information relevant to gig workers. Helping workforce boards easily  find and share promising practices relevant to gig workers would allow  them to fully and efficiently be able to help individuals who want to  engage in this type of work. Workforce Boards Said They Face Challenges in Reporting and Documenting Performance Outcomes for Gig Workers

Documenting employment and earnings outcomes for gig workers may be  challenging for workforce boards. verify outcomes. Recommendation for Executive Action

The Assistant Secretary, Employment and Training Administration, should  take steps to help workforce boards readily find and share information on  promising practices related to serving gig workers by, for example, cross  referencing promising practices on self-employment and other relevant  practices in WorkforceGPS with terms commonly used to describe the gig  economy, by creating a community of practice on this topic, or other  mechanisms, as appropriate. Appendix I: Objectives, Scope, and Methodology

We examined (1) what is known about the characteristics of gig workers  and the work they perform, including its benefits and downsides; (2) the  non-occupational skills and training stakeholders indicate are needed by  gig workers and how they are provided; and (3) the challenges, if any,  that select federal agencies and workforce development boards cite in  providing supports for gig workers. To address our research questions, we:  1.  reviewed relevant federal laws, regulations and guidance;  2.  conducted a review of relevant literature;  3.  reviewed DOL’s technical assistance website and federal internal  control standards that address communication with external parties;  and  4.  conducted interviews with federal agencies, state agencies, local  workforce boards, gig workers, gig companies, and researchers and  other stakeholders. Overall, in  selecting the boards that we visited in person, we considered factors such  as the potential volume of gig workers in the local area; the range of  board services provided to gig workers; the opportunity to learn about  different forms of gig work (i.e., both online and offline gig work); the role  that DOL grants may have played in supporting boards’ efforts to serve  gig workers; and opportunities to interview gig workers and gig  companies. GAO-14-19.
Why GAO Did This Study

In 2015, GAO reported that millions of workers do not have standard work arrangements. Some barriers to self-employed gig work have been reduced by online platforms, and while the public workforce system is accessible to all job seekers, it is unclear how the system is helping gig workers obtain the necessary skills and training to be successful. GAO was asked to review the skill and training supports needed by gig workers.
GAO examined (1) what is known about the characteristics of gig workers and the work they perform, including its benefits and downsides, (2) the non-occupational skills and training that stakeholders indicate are needed by gig workers and how they are provided, and (3) the challenges that selected federal agencies and workforce development boards cite in providing supports for gig workers. GAO conducted a literature review and interviewed officials at federal agencies and a nongeneralizable sample of 8 state and 11 local workforce boards—locations selected based on the likelihood of a large number of gig workers, among other factors—and gig company officials, gig workers, researchers, and other stakeholders. GAO also reviewed relevant federal laws, regulations, and guidance.

What GAO Found

Studies GAO reviewed suggest that workers who engage in on-demand, or “gig” work, differ in their characteristics and types of work performed, but each of these defined these workers differently. There is no universally accepted or official definition of gig workers; but, for its report, GAO has identified their characteristics as follows: self-employed individuals providing labor services and completing single projects or tasks on demand for pay. Gig work can be obtained or performed either offline or online. According to the three quantitative studies GAO reviewed, up to about 40 percent of workers earning money through online gig work (i.e., applications or websites that connect workers with customers) were 34 years old or younger. They worked in a variety of occupations ranging from providing legal services to moving furniture. According to stakeholders GAO interviewed, benefits of gig work included flexibility in scheduling and autonomy, while downsides included a lack of financial security and benefits, such as health and unemployment insurance.
According to stakeholders, gig workers need soft skills and business skills, many of which can be provided by the Department of Labor's (DOL) existing programs. Soft skills include customer service, time management, and self-motivation, and business skills include marketing and financial literacy and management. In addition, gig workers need an understanding of legal matters (e.g., contracts) associated with gig work. The nation's public workforce system, including workforce boards, which DOL oversees, and other partners can provide some of these self-employment skills based on local area needs. Officials at the local workforce boards GAO interviewed said they served gig workers either directly, for example, through recruitment events and by providing career services, or indirectly, such as through general self-employment services. For instance, the Chicago board recruited drivers for a ridesharing company and the San Francisco board helped gig workers in the media and visual arts develop their portfolios and build their networks.
Officials from selected state and local workforce boards cited two broad challenges in providing supports for gig workers: a lack of information on promising practices related to gig workers and difficulties in reporting their employment-related outcomes. Officials from all 19 state and local boards GAO interviewed expressed interest in other boards' efforts to serve gig workers. DOL shares promising practices through its searchable online portal, but has not fully linked “gig” and related terms to relevant information on self-employment. Helping boards easily find and share promising practices relevant to gig workers would allow boards that want to help gig workers to do so more fully and efficiently. State and local board officials also explained that it is challenging to verify employment and earnings outcomes for the self-employed as they are required to do under the Workforce Innovation and Opportunity Act (WIOA). Because these outcomes for gig workers may be difficult to verify, a board's performance under WIOA may be negatively affected and result in penalties. Consequently, DOL officials said workforce boards had asked for guidance on collecting outcome information. In June 2017, DOL issued clarifying guidance to boards on how to collect information that can be used to report outcomes required under WIOA.

What GAO Recommends

GAO recommends that DOL take steps to help workforce boards find and share information on promising practices related to serving gig workers. DOL agreed with GAO's recommendation.