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The gig economy is a term used to describe the trend of short-term contracts or freelance work as opposed to the traditional job model. This type of work has been around for centuries, but it has seen a recent resurgence in popularity.
The term “gig” was originally coined by jazz musicians in 1915, referring to their live performances which were often impromptu and required no prior commitment.
The gig economy started to grow in the 1940s when World War II caused a need for businesses to fill gaps in their workforce with temporary labor. Since then, the freelancing economy has continued to grow and change.
Different types of work are becoming more popular as traditional nine-to-five jobs with a single employer become less common. People are choosing to balance a wider income stream by working on many projects at once.
There is a trend emerging beyond app-based gig work. More and more people are turning to freelance as a way to make a living. This shift happens across all industries, as businesses are looking for ways to cut costs.
Freelancing offers the flexibility and freedom that traditional employment can’t provide.
Will The Gig Economy evolve to become The New Normal?
As the gig economy continues to grow, more and more office workers are seeking a drastic change.
For many people, the traditional job with a single employer is no longer a reality. Instead, they are balancing multiple income streams and working independently.
This shift began in 2008-09 during the financial crisis and has become a popular career choice for many people.
This has a major impact on the business world, as more and more people embrace freelancing, businesses will need to adapt in order to stay competitive.
The freelancing economy is a rapidly growing phenomenon all over the world.
The labor market has lots of short-term contracts or freelance work, as opposed to permanent jobs.
So far, the freelancing platforms’ share of total employment is modest – ranging between 1% and 3% of total employment. However, this number is growing and is expected to reach 17% a year by 2023, according to a Mastercard study. This growth is mainly driven by the increasing popularity of these platforms among businesses and workers.
Gig Economy Trends and Statistics
The rise of the freelancing economy is reshaping how we work.
According to the same Mastercard report, the global freelancing economy is worth $204 billion.
In the United States, it is estimated that by 2027 there will be more freelance workers than non-gig workers.
As the world of work continues to evolve, so too do the ways in which businesses operate.
Small businesses are predicted to develop their own networks of contingent workers. This will allow them to minimize fixed labor costs and expand their pool of potential employees.
The current pandemic has forced companies to get creative with their hiring practices. In some cases, this has meant hiring temporary or freelance staff instead of full-time employees. This is often because budgets have been cut and there is not enough money to cover the cost of benefits for full-time staff. Another reason for this shift is that workers in Generation Z seem to prefer gig work to traditional full-time employment. Therefore, employers are trying to be responsive to these changing requirements and preferences.
The rise of the freelancing economy has been a boost for many workers looking for increased flexibility and the ability to be their own boss.
And as digitalization continues to open up new opportunities for freelance work, there are even more reasons to take advantage of this growing trend. Here are just a few of the benefits that gig work can offer individuals:
- Greater flexibility when it comes to balancing work and life commitments.
- The ability to control your own work schedule and choose the gigs that best suit your skillset and interests.
- Job exposure to a variety of different industries and career advancement opportunities that you might not have otherwise had access to.
The Gig Economy after the pandemic
The COVID-19 pandemic has resulted in many people losing their jobs. Some of these people are now turning to freelance as a way to make ends meet.
There are a few things you should keep in mind if you are new to freelancing.
But, after all, don’t forget that freelancing is a business
As a contractor, it’s important to ensure a secure and suitable pay rate. This way, you can be sure that you’re getting the appropriate pay for your work, and you can do that at Vettted.
Who works in the Gig Economy?
People who work as freelancers are often satisfied with the independence and flexibility that it provides.
Approximately 20% of freelance workers do so out of necessity, as they are unable to find traditional employment.
This is according to a study conducted by McKinsey which categorized independent workers into four groups.
- The first group, which the study refers to as “free agents,” choose to work independently and see it as their primary source of income.
- The second group, called “casual earners,” use independent work to supplement their primary income.
- The third group, referred to as “reluctants,” rely on independent work for their primary income but would prefer traditional jobs.
- Finally, the fourth group consists of workers who use platforms to find work because they are not suitable for dependent work. This group makes up around 20 percent of all platform workers.
The bottom line, different groups of people have different reasons for doing supplemental work outside of their primary job. Some do it out of necessity, while others do it for extra income or to gain new skills.
As the gig economy continues to grow, policy-makers face the challenge of keeping all four of these groups happy. They must take into account the economy for the digital age, as they develop policies that will impact freelance workers.
In which group of freelance works are you in?
Start your freelancing career now.
