If you’ve ever used an app to call a freelance taxi driver, book a holiday rental, order food or buy a homemade craft then you’ve probably participated in this segment of the economy.
Definition and Examples :
The gig economy is defined by firms offering freelancers and independent contractors short-term, flexible contracts rather than full-time employees. Businesses can save money on recruiting, benefits, and payroll costs in the gig economy, while gig workers benefit from the ability to earn money from a variety of sources and accomplish projects and activities on a flexible schedule.
Say gig economy and people will think of:
Uber/Lyft drivers
TaskRabbit workers
Airbnb landlords
Online marketplace sellers
Volunteers
Artists
But the list should also include:
On-call workers
Multiple job holders
Contingent and part-time workers
Highly skilled contractors
Seasonal workers
Consultants
And many others ...
Gig economy participants sometimes treat their gigs as their main source of income, and sometimes as a secondary one. Some of them are highly skilled and this mode of work is their choice, some are unskilled and have no alternativ
In the gig economy, freelancers and independent contractors typically find individual gigs by connecting with businesses and customers using an internet platform or smartphone app. Companies like Airbnb, TaskRabbit, Uber, Lyft, PostMates, DoorDash, and Instacart have relied on this method to grow and thrive during the last decade, giving rise to the gig economy. Indeed, according to a 2020 report by the ADP Research Institute, gig labour in the United States increased by 15% from 2010 to 2019. According to a MasterCard and Kaiser Associates analysis, the gig economy is expected to rise to $455 billion in gross volume transactions by 2023.
In the gig economy, instead of a regular wage, workers get paid for the "gigs" they do, such as a food delivery or a car journey.
Proponents of the gig economy claim that people can benefit from flexible hours, with control over how much time they can work as they juggle other priorities in their lives.
In addition, the flexible nature often offers benefits to employers, as they only pay when the work is available, and don't incur staff costs when the demand is not there.
Meanwhile, workers in the gig economy are classed as independent contractors.
That means they have no protection against unfair dismissal, no right to redundancy payments, and no right to receive the national minimum wage, paid holiday or sickness pay.
It is these aspects that are proving contentious.
KEY TAKEAWAYS :
The gig economy is characterized by short-term, flexible jobs that businesses offer to freelancers and independent contractors instead of traditional, full-time employees.
Freelancers and independent contractors typically get individual gigs using an online platform or mobile app to connect with businesses and customers.
Notable gig economy businesses include Uber, Lyft, Doordash, Upwork, and Fiverr.
The gig economy has benefits, including flexibility, independence, and a variety of work.
Cons of gig work include inconsistent income, lack of benefits, stress, and self-employment tax