What he says has happened is that the underlying structures of the economy have changed, but policies have not changed to keep up.
Little says his own party also has to play catch up; that being the "party of the working people" does not mean representing only those who work from 9am to 5pm or who do shift work on an hourly rate.
Little clearly sees the commission, which will be chaired by Labour's new finance spokesman, Grant Robertson, as a means of Labour being seen to reach out to one-person businesses, those who now work on contract and others no longer in traditional employment arrangements.
But the commission - which will have a two-year lifespan and travel the country conducting seminars and workshops - is a vehicle by which Labour can more generally renew contact and communication with the hundreds of thousands of voters who have deserted the party at recent general elections.
The commission's work will also have a major bearing on the kinds of policies Labour will take into the 2017 election. Crucially, it will enable the party to say it has listened to the people first - rather than repeating the mistake made in this year's election of imposing policies on voters that they do not like but which Labour believes is good for them.