What is Gig Economy?
The Gig Economy: Analyze the rise of the gig economy, where temporary and freelance work is increasingly prevalent. Explore its impact on traditional employment, worker rights, and the broader economy.
What is the gig economy?
The gig economy is a relatively new, service-based sector of the economy that relies on contract, independent, or flexible work that is frequently carried out online. Although the gig economy was originally started in the 1910s by jazz musicians, they used the term “gig” to refer to musical performances that they were doing part-time. Today, the gig economy is a very popular source of income among young people. It is dated that the gig economy started to grow in 2007 and 2008, due to the global financial crisis. The crisis led to the closure of numerous firms and an increase in worker unemployment. As a result, a lot of people used contract or freelance labour to get by during the financial crisis, which is happening once now in the midst of the epidemic.
However, many Americans were already transitioning to the gig economy before the outbreak. An estimated 55 million Americans, or 36% of the workforce, participated in the gig economy in 2017. According to a CNBC study in February 2020 stated that the number of gig workers surged by 15% since 2010. That is about six million more workers involved in the gig economy than in 2010.
Why is the gig economy so popular among younger individuals?
The 2016 poll of Freelancers in 6 countries revealed that those who choose to freelance, or 70% of the population, were happier than those with traditional jobs. Independence, flexibility in terms of where and when these people work, as well as their decision to work on topics they enjoy, were all cited as contributing factors to these favorable outcomes. Over 35% of the workforce, or 55 million people, work as freelancers and other gig economy employees in the US alone today.
The backside of the freelance industry.
Although freelancing and being a part of a gig economy can be seen as a perfect career opportunity, many do not realize that it is far from ideal.
If you want to work for yourself you will require various skills and abilities to manage your own business. Firstly, you will need the skills that are in demand in society. This is because your selling services or goods will be in greater demand, so the freelancer can raise profit and further reinvest into the business.
Second, you must develop your entrepreneurial skills in order to be a successful freelancer. This implies that you will be in control of contract negotiations in the future as well as marketing your company and expanding your clientele. Nevertheless, you will need a broad range of administrative abilities, including initiative and willpower as well as skills in time management, bookkeeping, and project management. All of these choices will be up to you because there is no employer to direct your behaviour or set working hours.
Thirdly, freelancers do not receive the perks that other jobs pay for, including paid time off for vacation and illness, life insurance, retirement plans, and college expenses. Furthermore, there won't be any paid time off because you are working for yourself. You are in charge of your benefits.
What are examples of the gig economy?
Occupations that people find and access through online job-listing sites are examples of gig economy occupations. These jobs are often one-time or short-term contract jobs and may include operating a vehicle for a ride-sharing company, painting a person's home, working as a freelancer, coaching, exercising, and tutoring. Some firms operate in the gig economy, such as Airbnb, Uber, Doordash and AmazonFlex
Written by Ulpan Nurdilda | Proofread by Yasmin Uzykanova
