What happens to pay during the holidays?
- Hourly pay for flexible work in service-related industries may rise during the fall if the economy reverts to pre-pandemic trends
- Businesses with higher demand for work on the actual holidays are likely to see large spikes in pay in their labor markets
- Other businesses can expect stable pay throughout the fourth quarter unless another wave of the pandemic disrupts labor supply
Labor Market Focus - Boston
The Boston area has some of the highest pay rates in the nation for flexible workers, with Pros on the Instawork platform earning more than the MIT Living Wage for single people without children. Demand for flexible work has also been rising steeply, with a 21% increase month-on-month for Boston businesses in August. Here we look at some of the longer-term trends in the Boston labor market.
Good experiences lead to worker loyalty
- Workers are more likely to return to work at the same business after both they and the business leave positive reviews
- Higher pay is not always linked to a higher likelihood of a given returning, though it does makes shifts more attractive to all workers
- Other non-monetary factors, like commuting time, may also influence workers' likelihood of returning
Labor Market Focus - Philadelphia
Career paths in flexible work
- Flexible workers can pick up skills and experience that offer career advancement outside of traditional channels.
- Career paths include movement to higher-wage roles and from shift work to permanent hires.
- Flexible work can be a "try-before-you-buy" recruiting tool as well as a source of temporary labor.
How expanding our business network improves outcomes for hourly work
- When more businesses join the Instawork platform, network effects bring benefits to existing partners as well.
- These benefits include higher fill rates, higher-quality workers, and higher satisfaction with completed shifts.
- The benefits are connected to the diversification of our business partners and not just higher volumes of shifts on our platform.
How high gas prices affect in-person hourly workers
- Workers have been traveling further to complete shifts this year than at the same time last year.
- But workers are not willing to travel as far this year for the same pay, reflecting the pressure of higher prices.
- Businesses will have to pay more to induce workers to make longer commutes.
The premiums for night, weekend, and holiday shifts
- In general, workers expect higher rates of hourly pay for shifts that take place during nights, weekends, and holidays.
- These premiums are highest in hospitality and lowest in industries related to non-perishable goods, including logistics and retail.
- For businesses that can't raise pay any more right now, a variety of other factors can make shifts more attractive to workers.