The 21st century was predicted to be the era of the greatest leaps in terms of innovation and technology. This will would in turn lead to more jobs. Well, only one-half of this prediction came to pass since the number of your typical “jobs” have actually declined. This happened due to technological advancements. I know you are wondering how that is even possible? Well, that is a story for another day.
GIG Economy
A 2019 study conducted by Master Card indicated that the global gig economy generates $204 billion per year and is expected to grow by 17% by the year 2023. It’s predicted that by 2025 more than a third of all workers across the globe will take on gigs rather than being employed. Thanks to the increase of online platforms that are capable of generating income. Overall, 58% of the gig economy revolves around the transportation sector, IT, accounting, finance, legal, and other professional advisory services. Therefore, it is true to say that the gig economy is expanding fast.
EXPANSION
The expansion of the gig economy is not solely due to a lack of employment opportunities or lack of well-paying jobs as most people will assume. It’s more about people taking advantage of the revolution of technology and the need to maintain a work-life balance! Instead of the usual 9 to 5 jobs, the younger generations are slowly shifting their focus to the gig economy. This offers them temporary and flexible jobs through various online platforms. But what’s unique about the gig economy? Well, it presents significant benefits to both businesses, workers, and consumers by making work not only adaptable to the needs of the moment but also supports a flexible lifestyle. Now you understand why more people and businesses today prefer to hire or get hired as independent freelancers. This is what has led to the expansion of the gig economy.
But that’s not all!
The gig economy is a light at the end of the tunnel and a gift that keeps on giving.
With the workforce being increasingly mobile, and the increasing amount of work that is conducted on digital platforms, the gig economy is definitely the next big thing. For instance, the previously tight-knit relationship between jobs and locations is gradually being decoupled by the gig economy. Rather than conducting job interviews among people living near the company, most employers have the option of choosing the right person for a given task from anywhere across the globe.
The gig economy is helping most companies save huge amounts of dollars that would have been invested in searching and training people to perform one-time or short-term tasks. But here is the catch! companies may fail to invest in new and upcoming talent. Since skill is the qualifier for jobs in the gig economy, not proximity. With the ability to access a skilled workforce in the gig economy, more companies are becoming less interested in investing in new and upcoming talents.
We cannot ignore the fact that the gig economy provides consumers with alternatives to commercial products and services. This services are cheaper and more efficient than their mainstream counterparts; like Uber to replace taxis and buses, GrubHub which is an effective food delivery service that delivers whatever kind of food your heart desires, and online writing sites such Fiverr and Upwork where you can get a writing task done in a couple of hours instead of hiring a full-time writer. The good thing with the gig economy is that you’ll always have a wide range of applicants to choose from since your selection criteria will be based purely on the freelancer’s skill set rather than their proximity. Thanks to the development of computers and technology which has made people work efficiently from home.
The COVID-19 pandemic has also fast-tracked the expansion of the gig economy more than researchers had previously anticipated. In the post-pandemic world, the gig economy will keep expanding since most people who lost their jobs and businesses during the 2020 lockdowns have turned to the gig economy. Don’t get it wrong! They are not only turning to the gig economy as a survival strategy but rather due to the benefits that come with the gig economy. This includes flexible working hours from any location, and greater independence with nobody to look over shoulders.
A gig economy worker is assigned a task and left alone to complete it at their own pace as long as they don’t exceed the deadline. Lastly, the ability of gig workers to take on a variety of jobs has been an eye-opener. For those who had invested their time in full-time employment in the pre-pandemic world.
The need to break away from monotonous tasks has also pushed many professionals to venture into the gig economy. For instance, why should an accountant spend 30 years of his or her career preparing accounts and tax returns at a local law firm. There are tons of tasks an accountant can handle such as financial forecasting and risk analysis. Compiling and presenting financial and budget reports among others. In other words, the gig economy makes workers more excited about projects and they can be creative with their work since they vary with each day.
The gig economy also comes with its fair share of setbacks. Most gig economy workers work online and they are categorized as self-employed. This means they miss out on having any kind of social security that encompasses any kind of health/retirement care. Social security is mandatory for all employed persons in most countries. The gig economy frees up companies or online platforms from covering the risks encountered at work and the payment of any benefits. Faceless digital employers take no responsibility for the health and safety of their gig workers. It’s also reasonably argued that the gig economy is for the less reliable workers looking for remote jobs. Because they are not willing to put in the hard work. However, it’s easy to identify and avoid such workers just by setting up criteria for the selection of freelance workers.
Conclusion
I must admit, the gig economy has both excellent and volatile sides. While others might thrive will in the gig economy, others might find it challenging. Either way, the gig economy is ever-growing and it’s here to stay. So, if you feel like the gig economy satisfies your need, then it is the calling you’ve been waiting for. Don’t miss it!
Also Read – https://blog.30mins.com/how-to-begin-your-freelance-journey-on-30mins-com/
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