Illuminating the Shadow Workforce
What is it measuring?
ADP estimates the number 1099 independent contractors and short-term W-2 employees, using data from companies that use ADP HR management software. It includes data on the industries, demographics, income, benefits, and motivations of these workers.
What does it tell us?
From 2010 to 2019, the share of 1099 and short-term W-2 workers grew from 14.2 percent to 16.4 percent of workers hired. 1099 independent contractors tended to be older, have more formal education, and receive higher earnings. Short-term W-2 workers tended to be younger, have lower levels of educational attainment, and receive lower earnings.
How is it collected?
ADP utilized three sources of data: 1) administrative payroll data from 75,000 large companies employing over 18 million workers collected between 2010 and 2019; 2) a two-stage online survey of 16,800 workers; and 3) interviews with 21 business decision makers.
Who collects it?
ADP Research Institute, the research branch of ADP, a provider of human resources management software and services in the U.S.
Considerations
The use of administrative payroll data provides comprehensive information about the direct hiring practices of companies. However, it is limited to companies using ADP software, and excludes app-based workers, because gig platform companies typically do not use payroll software. In addition, subcontracted workers would appear as employees of their agencies, and would not be included in the definition of gig work.
How to access this data?
Privately held by ADP
Reports
Illuminating the Shadow Workfore: Insights Into the Gig Workforce in Businesses; 2020; ; ADP;