The sharing economy is in full swing and North Carolina, at least according to Uber, is reaping the rewards. An article in the WRAL TechWire reports that Uber has “…created more than 8,000 jobs for drivers in the 19 months” they have operated in the state. This coincides with $20 million in take-home pay for North Carolina drivers as well. Uber expects the amount to grow going forward, with $1.6 billion in driver pay projected by 2020.
While giving people work and putting money in their pockets is admirable, it’s worth noting that not all jobs are created equal. A recent Slate article on Uber points out that the jobs claimed by the company are very different than the jobs numbers we hear from the Bureau of Labor Statistics (and, by association, from the North Carolina Department of Commerce). So, while Commerce reported employment of 4,219,600 for North Carolina in March 2015, none of those positions include the 8,000 workers from Uber. Uber drivers are included in the unemployment rate calculation (unemployment rate = unemployed workers divided by total number of employed and unemployed workers). However, they don’t count as one of the 253,510 unemployed workers from March because they are considered self-employed as independent contractors. They have jobs, but they don’t show up on the payroll of any company. As Slate points out, using drivers this way means that Uber doesn’t have to pay business costs such as gas, parking, and car insurance. Uber also doesn’t have to guarantee a minimum wage or provide health or unemployment insurance.
Could some of those 8,000 workers be employed full time? We can make an educated guess by looking at the data Uber has released about their drivers. According to nationwide Uber data, 19 percent of drivers work 35+ hours a week. If this holds for North Carolina, then nearly 400 full-time jobs have been generated by Uber. Also, 40 percent of Uber drivers, nationally, have Uber as their only job. There’s no way of knowing what portion of the 40 percent get 35+ hours a week. And, again, it’s important to note that those workers don’t receive benefits, a guaranteed wage, etc.
Regardless of the conditions of employment, it is notable that 8,000 people have, of their own free will, chosen to accept the opportunity to earn additional wages by using their own vehicles in the ride-sharing economy. If Uber’s numbers are true, drivers’ earnings help boost the North Carolina economy to the tune of $20 million in take-home income and without any government assistance. However, the company also operates without government regulation and taxes. As the sharing economy moves forward and faces more hurdles on the local and statewide levels, it will be interesting to keep an eye on how and how many North Carolinians benefit.