The gig economy has become a buzzword. It’s defined as the labor market made up of short-term contracts, and freelance work as opposed to permanent or full-time jobs. Gig workers include taxi drivers, performing artists, technical support reps, and even customer support agents selling Spectrum internet packages part-time!
This type of job offers a flexible working environment since you are working short-term mostly on a project basis. Interestingly, you can join the gig economy while having a full-time job. You would be working as a school teacher and take gig-based jobs like giving piano lessons or working as a virtual assistant for a few hours on the weekend.
The Rise of The Gig Economy – When Did It Begin?
More and more people are considering turning to the gig economy for earning a living or to make extra cash. There are a few drivers that resulted in the formation of the gig economy and promoted it so much that it has now become normal.
It all started in 2008, during the global financial crisis that resulted in a severe economic crisis worldwide. It was one of the most serious recessions after the great depression. Many people were laid off. Some were even underemployed. This spiked the demand for temporary jobs because people were willing to do anything to replace or supplement their income.
As a result, some people combined their contractual job with a flexible side job while others were doing several part-time jobs. The more people became familiar with the gig economy, the more this trend expanded and became normalized.
Rise of the Internet and Digitalization
The trend pumped up further when the internet became mainstream and platforms like Craigslist, Elance, Odesk (now merged and called Upwork) came to the scene.
This made it easier for people to find work anywhere in the world. The rest was history! Now, people use the power of social media platforms such as LinkedIn to pitch clients. Some even have their own websites and they use digital marketing tactics to attract clients from across the world.
Further Spike during COVID-19 Pandemic Era
Today, amidst the global pandemic, gig economy workers are able to keep their services running in order to cope with the financial crunch. Contactless deliveries, online teaching, medical assistance, and more – now that everything is pushed online, the gig economy workers have played their role in offering assistance during global lockdowns.
Furthermore, the people who lost their jobs, took pay cuts, sent on furloughs turned to the gig economy to supplement their income. It’s not uncommon to hear from someone that they are doing two or more jobs.
The gig economy has even helped restaurants survive. During the lockdown, regular servers or bartenders are not required. But food has to be delivered, right? Hence, restaurants started delivering food at the doorsteps of customers. Chefs were able to keep their jobs. Restaurants could afford to pay their rents and keep the business owner. Many have been able to open their doors when the lockdown was lifted.
The Advantages of Gig Economy
The benefits of the gig economy are evident. It has empowered millions of people by helping them find work. If you are planning to enter the gig economy, these are some benefits you just can’t get enough of:
- The barriers to entry are low. Anyone can join because there are jobs for people of all skill sets. Even if you think you don’t have any skill, it’s easier to learn one and jump on this bandwagon.
- Work-life balance is in your control. You are free to choose the number of hours you are willing to put into a side gig.
- The working hours are flexible. You are in charge of when to start your workday and for how long.
- Take on projects depending on your interest. Nobody can forcefully assign you anything. You’re the boss!
- Then comes the freedom to work from anywhere around the world. All you need is an internet connection and a laptop.
Wait, It Has Some Downsides Too
Everything good comes with a price and so is a gig economy job. Since it’s not a full-time job, you don’t get to enjoy perks like health insurance, pension, paid holidays, or paid medical leaves. Plus, there is minimal job security. You could lose a gig any time, which is why most gig workers take on multiple projects. As a result, you could be working for more than 40 hours a week meaning no work-life balance.
While the gig economy gives you flexibility, it may mean compromising on some benefits of a full-time job.