Everyone is talking about the "gig economy," and an increasing number of people are employed in it. The phrase may appear to be novel, but it is not. The gig economy was previously known as the freelance economy, agile workforce, or even temporary work before apps brought the concept of on-demand services and gig work to everyone's phone.
It may also appear that everyone these days has a side hustle. Or that people have swapped high-paying day jobs for less stressful gig economy jobs. While some people have successfully transitioned from 9-to-5 jobs to gig jobs, the gig economy encompasses much more than on-demand work.
What is the Gig Economy and Gig Jobs?
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A "gig" is a term used by musicians to describe performing at a specific location. The gig economy operates similarly (without carrying a tune). Gig workers work as short-term, temporary, or independent contractors for one or more employers instead of a traditional, in-office, full-time job with a single company (though they are not employers in the conventional sense).
In a nutshell, the gig economy is a free market system in which businesses hire independent workers for short-term contracts, and temporary jobs are typical. The term "gig" is a slang term for a job that lasts for a set amount of time; it is commonly used by musicians. Work arrangements such as freelancers, independent contractors, project-based workers, and temporary or part-time hires are examples of gig employees in the workforce.
Though the term "gig economy" is new, nontraditional work arrangements have been around for a long time. According to a study conducted by the American Staffing Association, most Americans (78 percent) see the gig economy as a new way to describe the participation of this long-standing independent workforce.
What is the Gig Economy?
The gig economy is made up of small tasks that a gig worker completes, regardless of the industry in which they work. These tasks can range from picking up groceries to writing code. A gig worker can work for a set number of hours (such as a shift) or by the project. When the task or shift is finished, the worker moves on to the next job. This could be another task with the same company or something completely different with a different company.
Most of the time, the shifts or projects are adaptable. A gig worker may have a day job from 9 a.m. to 5 p.m., and then a second "gig job" from 5 p.m. to 9 p.m. at night. A gig worker can also combine several "gigs" to create a flexible or alternative schedule for a full-time job. Gig workers have the option of working from 9 a.m. to 5 p.m. While many people believe that the "company" is an employer, this is not the case in the gig economy. Many companies that use gig workers, including Uber, Instacart, TaskRabbit, and MechanicalTurk, do not hire the workers. The company is simply a "connector," bringing together contractors and clients.
Who is Involved in the Gig Economy?
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The gig economy comprises companies, gig workers, and consumers. The gig economy can be applied to various organizations, ranging from technical positions to transportation positions. Among the industries that provide gig economy jobs are:
Some industries that offer gig economy jobs include:
- Information technology
- Software development
- Project management
- Accounting and finance
- Education
- Construction
- Media and Communications
- Freelance writing
- Arts and design
- Transportation
There is no one-size-fits-all profile for gig economy workers. These workers include freelancers, independent contractors, project-based workers, and temporary or part-time hires. In 2017, 6.9 percent of all workers in the United States were independent contractors. Gig workers are difficult to spot in employment and earnings surveys, but reports claim that less than half of them rely on gigs as their primary source of income. According to some studies, men are more likely to take labor-based jobs and depend on them for income, whereas women are more likely to handle sales or marketing jobs as supplemental income.
10 of the Best Jobs in the Gig Economy
There are numerous types of gig economy jobs. Here's a quick rundown of ten gig economy examples to demonstrate the possibilities.
1. Taxi Driving and Ridesharing
To apply for ridesharing apps like Lyft and Uber, all you need is a smartphone and a car. If you meet the requirements, you'll be able to start earning money on the side in no time.
2. Education and Training
Many teachers, tutors, and instructors work as independent contractors, delivering education to various clients.
3. Delivery
Food and parcel delivery apps, such as Postmates and Grubhub, are popular in the same way that ridesharing apps are. Gig workers make deliveries on bikes, motorcycles, cars, and vans.
4. Administrative Jobs
These are in high demand in the gig economy. Many people, for example, work as virtual assistants, completing tasks for a variety of clients.
5. Computer Software Development
Software developers work as independent contractors and consultants for small businesses, assisting them in developing websites, software, apps, and games.
6. Accounting and Finance
Accounting and finance-related tasks, such as bookkeeping and tax return preparation, are performed by many gig workers for clients.
7. Digital Marketing
In the gig economy, there are a variety of digital marketing jobs available, ranging from Facebook ad management to search engine optimization (SEO).
8. Project Management
Project managers are used in various industries to oversee and direct projects from beginning to end.
9. Writing
There are numerous freelance writing jobs available in the gig economy. These can include everything from writing advertising copy to improving CVs.
10. Event Staffing Positions
Many event planners require temporary workers for parties, weddings, and conferences.
Working in the Gig Economy: What Are the Advantages and Disadvantages?
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The gig economy provides several advantages that traditional work does not. However, there are some significant drawbacks.
Let's take a closer look at some of the pros and cons of gig economy.
Perks of Gig Economy
Let's start with the five perks of gig economy.
- Low Entry Barrier
It is very simple to enter the gig economy. Many gig economy jobs are straightforward and do not necessitate any qualifications or prior experience.
- Adaptability
Workers in the gig economy have the freedom to choose when and with whom they work (or do not work). As a result, many gig workers prefer to work from home.
- Varieties
Gig economy workers frequently perform multiple jobs for various clients, which can help avoid boredom and keep work interesting.
- Individualism
Workers in the gig economy are self-employed. A gig worker, in other words, is her own boss. As a result, most gig workers are not required to attend meetings, conduct progress reviews, or deal with office gossip and drama.
- Possibility of Trying New Jobs
Many people have a small business idea they'd like to try, but it doesn't make sense for them to give up their primary income source. Working in the gig economy is an excellent way to try out new jobs on the side with little risk.
Cons of the Gig Economy
Every job, unfortunately, has drawbacks. Here are the top five drawbacks of working in the gig economy.
- Low Salary
Although many gig economy workers make good money from gig work, generating a substantial income from small jobs can be challenging. This is especially true for low-skilled jobs such as delivery driving or grocery shopping.
- Inconsistent Earnings
A flexible schedule necessitates a flexible income. Workers in the gig economy frequently see their income fluctuate depending on the amount of work available.
- Inadequate Benefits
Self-employed individuals are responsible for their own health insurance and retirement plan because they do not have an employer to provide benefits.
- Taxes and Other Expenses
Individuals who work for themselves must also manage and pay taxes on the money they earn from gig work. Furthermore, gig economy workers must usually buy and maintain the tools and equipment they require, such as cars, computers, smartphones, and phone plans.
- Possibility of Stress and Burnout
Working in the gig economy can be stressful and exhausting. Managing a large number of jobs and clients is not for everyone. And not knowing when your next job will arrive can be stressful.
Build a Gig Website with Strikingly
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A gig business is a fantastic way to create a steady stream of income that has the potential to grow over time. Many of our Strikingly users started small just a few years ago and are now making a lot of money from their freelancing businesses. They began promoting their abilities by creating a simple website on our platform. It only takes a little courage to get through the difficult times at first. You have a good chance of growing large by the end of the pandemic if you create a website with Strikingly and have patience and perseverance.
Conclusion
There are numerous opportunities to earn extra money from small, on-demand jobs in the gig economy. Gig work has existed for a long time under various names. There are numerous types of gig workers, including freelancers, consultants, independent contractors, and temp workers. Workers in the gig economy may face low pay and inconsistent income. Furthermore, they are responsible for their own taxes, benefits, and expenses. Gig economy jobs, on the other hand, offer a high level of flexibility and independence, as well as a low entry barrier. So, if you're looking to supplement your income, consider becoming a gig economy worker today!
