What Is a Gig Economy
What Is a Gig Economy-A gig economy is a labor market that heavily relies on temporary and part-time positions filled by independent contractors and freelancers as opposed to permanent full-time employees.
Gig Economy
Gig workers gain flexibility and autonomy, but have limited or no job security. Numerous employers save money by not providing benefits such as health insurance and paid time off.
Others provide some benefits to freelancers but outsource the management of their benefits programs and other administrative duties to external agencies.
The term is borrowed from the music industry, where “gigs” refer to single or brief engagements at various venues.
Understanding a Gig Economy
- In a gig economy, a large proportion of workers hold part-time, temporary, or independent contractor jobs.
- The result of a gig economy is more affordable and efficient services, such as Uber and Airbnb, for those who are willing to use them.
- People who do not utilize technological services such as the Internet may be left behind by the gig economy’s benefits.
- Cities typically have the most advanced services and are the most firmly rooted in the [gig economy].
The Factors Behind a Gig Economy
- The United States is well on its way to establishing a [gig economy], and by 2021, an estimated one-third of the working population will be engaged in gig work.
- As these positions facilitate independent contracting work, with many of them not requiring a freelancer to report to an office, experts anticipate this number to increase.
- Gig workers are significantly more likely to be part-time and to work remotely.
- Employers have access to a larger pool of applicants because they are no longer required to hire based on proximity.
- In addition, computers have advanced to the point where they can either replace people’s jobs or enable them to work just as efficiently from home as they could in person.
What Benefits Does the Gig Economy Offer?
- The [gig economy] has numerous advantages for both employees and employers. Employers have access to a diverse pool of available talent.
- If the employee’s talent proves to be unsatisfactory, there is no obligation to retain them or difficulty in letting them go.
- Employers can also hire from the [gig economy] at a time when it is difficult to find full-time employees.
- In addition, companies do not have to pay for health insurance or other benefits when they hire gig workers.
- For employees, the benefits of the [gig economy] include the option to work multiple jobs, the ability to work from anywhere, freedom, and flexibility in their daily lives.
Is the Gig Economy Worth It?
It is worthwhile for individuals working in the [gig economy]. According to studies, 79% of individuals who work in the [gig economy] are happier than when they held traditional jobs. 2
What Is an example of a Gig Economy?
- Individuals discover and gain access to [gig economy] jobs through online platforms that list such opportunities.
- These positions are typically temporary or temporary contracts. These include ridesharing, house painting, freelancing, coaching, fitness training, and tutoring.
- There are no additional benefits, such as health insurance, provided in exchange for the work.
Also Read: Market Economy
