Jun 01, 2016

On-Demand Economy Consumers

A recent survey from Glassdoor reveals that 68 percent of people say that salary and compensation are top of mind when considering whether or not to accept a new job. Analysis from Glassdoor on salary reports highlights which positions garnered the heftiest paychecks. For a job title to be considered for the list of the top 25 highest paying jobs, it had to have at least 75 salary reports shared by U.S.-based employees over the past year, and to not be a C-suite level position.

Unsurprisingly, 11 of the top 25 are technology and engineering jobs. This is in line with a recent report by Dice, a career site for tech professionals, that the average salaries in this sector in the U.S. jumped 7.7 percent to $96,370 annually, compared to the Bureau of Labor Statistics (BLS) stated average national wage growth of 2.2 percent.

According to Glassdoor chief economist Andrew Chamerlain, the positions earning high salaries are often not only in-demand, but are also protected from competition and automation.

Top 20 Highest Paying Jobs in the U.S.

Top 20 Highest Paying Jobs in the U.S.

Source: Glassdoor

Glassdoor’s findings demonstrate that higher salaries go hand-in-hand with higher education and skills that are in demand. A separate study of over 200,000 Glassdoor users found that only 10 percent who were making more than $120,000 per year gave their employer low marks as compared to 15 percent who did, while earning less than $30,000 per year. 

Fastest Growing Jobs that Pay Less Than $25,000

In contrast, some of the positions projected to grow the fastest in coming years pay less than $25,000 per year, according to the Bureau of Labor Statistics. And three-quarters pay less than the typical annual wage of $35,540.  Many of these hot jobs are in health care.

Fast Job Growth But Low Wages

Fast Job Growth But Low Wages

Source: BLS

New data from the National Technology Readiness Survey (NTRS), which has tracked technology behaviors and beliefs in the U.S. since 1999, shows that economic activities centered around online platforms are attracting significant consumer attention and spending.

According to the study, the on-demand economy is attracting more than 22.4 million consumers annually and $57.6 billion in spending. The largest category of on-demand spending is online marketplaces, such as EBay and Etsy, with 16.3 million consumers each month, spending almost $36 billion annually. Transportation, such as Uber and Lyft, comes in second with 7.3 million monthly consumers and $5.6 billion in annual spending. This is followed by food/grocery delivery at 5.5 million monthly consumers and $4.6 billion annual spending. Other on-demand services including home services (such as TaskRabbit), freelancer services, and health and beauty services account for $8.1 billion in spending each year. All other on-demand activity is about $3.8 billion.

On-Demand Economy Annual Spending Per Year (in Billions of $US)

On-Demand Economy Annual Spending Per Year

Source: National Technology Readiness Survey

According to Crowd Companies, a firm that tracks on-demand platform business, more than 280 companies provide on-demand goods and services across 16 industries today. This is up from 75 companies in 6 industries just two years ago.

Demographics of On-Demand Economy Consumers

The on-demand economy attracts a diverse group of consumers. The NTRS data indicates that while men are the most prevalent consumers of the on-demand economy, 45 percent are women. Almost half (49 percent) of on-demand consumers are millennials (aged 18-34), while 30 percent are between 35 and 54, and 22 percent are aged 55 or older.

The majority of on-demand consumers are white (63 percent), followed by African Americans (17 percent), Asian (12 percent) and Hispanic (9 percent). The on-demand economy also reaches a diverse geographical spread within the U.S., with 39 percent of on-demand consumers living in rural areas or small towns, 30 percent in outer suburbs, and 31 percent in close-in suburbs and cities.

The data also shows that the on-demand economy is not just for the wealthy. Approximately 46 percent of on-demand consumers have an annual household income of less than $50,000, and only 22 percent have an annual household income of $100,000 or more.

The NTRS report groups consumers into segments based on their technology readiness. “Explorers” are the most innovative and are early adopters of technology. “Pioneers” have a love/hate relationship with technology. “Hesitators” are optimistic about technology but are a bit uncomfortable or scared. “Skeptics” lack passion about technology. “Avoiders” see no benefit to technology.

On-Demand Economy Consumers by Technology Readiness

On-Demand Economy Consumers by Technology Readiness

Source: NTRS

“There’s no doubt that pay is among the leading factors most job seekers weigh when determining where to work. However, our research shows that a big paycheck isn’t necessarily tied to long-term satisfaction in your job.” ~Andrew Chamberlain, Chief Economist at Glassdoor