The rise of the gig economy has changed the way we work forever
This new way of working is transforming the way we live and bank.
10 MARCH 2021
Thanks to the rise of the internet, the traditional workforce was already experiencing a major shift.
Things like email and telecommunication made work more flexible and brought people together even
faster. Now, during the COVID-19 pandemic, this tech-reliant way of working has been pushed even
further. Today, people have more options when it comes to supporting themselves—it’s no longer
strictly necessary to rely on a classic 9-to-5 job to support yourself. Instead, people are able to be
more creative and self-reliant when it comes to work, taking on shorter term work as wanted or
needed. This way of working is known as the gig economy.
People have been working in the gig economy for years, but COVID-19 has caused interest in part-
time and freelance work to spike dramatically. But is this a good thing? What are the pros and cons
of gig work? Let’s take a closer look.
What is the gig economy?
The gig economy is a labor market made up of freelance or part-time jobs as opposed to full-time,
fixed contracts. Gig workers can encompass a wide range of fields—from driving a taxi or delivery
vehicle, to editing documents, to technical support, to performing artists. What makes a person part
of the gig economy is not their background or chosen field, but rather the fact that they work on a
short term, project basis, rather than as long term employees of one organization.
It’s also possible to join the gig economy while having a contracted job as an employee. For instance,
you might work as a secretary or school teacher and take on a gig-based job like bartending or
babysitting in your spare time to help supplement your income. Gig workers often wind up doing a
much wider variety of tasks than employees that work full-time for one single company.
Gig economy jobs
According to McKinsey, some of the fastest-growing gig economy segments are in the creative and
knowledge-intensive industries. For example, a graphic design studio could hire an advertising
consultant to help them on a specific project, or a pizzeria could hire an expert copywriter to help
them write a new menu.
However, beyond this model, modern tech companies are helping the gig economy to broaden its
reach by connecting workers with consumers more quickly and efficiently. These organizations break
the gig economy down into three components:
Gig economy workers—people hired to complete a specific task or project
Consumers—people or companies who require a specific task to be completed (i.e., a taxi ride, a new
website design, or a delivery service)
Companies linking workers directly with consumers—these are usually app-based platforms such as
Uber or Fiverr, which create gig economy jobs based on the immediate demand
Why is it called the gig economy?
Fascinatingly, the term ‘gig economy’ finds its roots in jazz music. The term ‘gig’ was first coined in
1915 by jazz musicians to refer to their individual performances. It’s a term that’s now used by all
genres of musicians, and even non-musicians.
When applied to this modern model of work, the term ‘gig’ is almost synonymous with ‘project’ or
‘flex.’ Essentially, it emphasizes the contained, one-off nature of the task at hand for which the
worker—whether they’re a jazz musician, graphic designer, or something else entirely—is hired to
complete.. For example, a graphic design studio could hire an advertising consultant to help them on
a specific project, or a pizzeria could hire an expert copywriter to help them write a new menu.
However, beyond this model, modern tech companies are helping the gig economy to broaden its
reach by connecting workers with consumers more quickly and efficiently. These organizations break
the gig economy down into three components:
Gig economy workers—people hired to complete a specific task or project
Consumers—people or companies who require a specific task to be completed (i.e., a taxi ride, a new
website design, or a delivery service)
Companies linking workers directly with consumers—these are usually app-based platforms such as
Uber or Fiverr, which create gig economy jobs based on the immediate demand
Why is it called the gig economy?
Fascinatingly, the term ‘gig economy’ finds its roots in jazz music. The term ‘gig’ was first coined in
1915 by jazz musicians to refer to their individual performances. It’s a term that’s now used by all
genres of musicians, and even non-musicians.
When applied to this modern model of work, the term ‘gig’ is almost synonymous with ‘project’ or
‘flex.’ Essentially, it emphasizes the contained, one-off nature of the task at hand for which the
worker—whether they’re a jazz musician, graphic designer, or something else entirely—is hired to
complete.
The rise of the gig economy
More and more people are turning to the gig economy as a way to make extra cash, or even earn a
living. But where did this meteoric growth come from? A few factors went into making the gig
economy so easy to enter. Let’s unpack the main drivers behind the rise of the gig economy.
The 2008 economic crisis
In the aftermath of the 2008 financial crisis, many people were either unemployed or
underemployed. As a result, the demand for temporary work grew exponentially as individuals were
looking for ways to replace or supplement their income.
Many people wound up holding several part-time or freelance jobs simultaneously, or combining a
fixed contract job with a flexible mini-job on the side. As more people became familiar with the gig
economy, gig work became normalized on a larger scale.
The rapid increase in digital technologies
Thanks to the internet, a gig worker is able to find work anywhere in the world. Physical geography is
no longer a factor when it comes to finding the right people to work with—whether you’re a
freelance illustrator looking for an author, or an agency on the hunt for an SEO specialist to help with
a big project. In addition, cutting-edge technology has resulted in the creation of digital, often app-
based, gig economy platforms that link consumers directly with workers. Think of Uber, which
connects drivers with someone who needs a ride, or Airbnb connecting hosts directly with those
looking for a place to stay.
The global COVID-19 pandemic
Amid the global COVID-19 pandemic, gig economy workers have become essential for providing a
sense of normality and keeping services running that otherwise wouldn’t have survived the crisis.
From vital contactless food and medicine deliveries to online teaching services, gig workers have
offered much-needed assistance during lockdowns all over the world. What’s more, as people lost
their jobs or had their hours reduced, many turned to the gig economy to quickly supplement their
lost income.
Today, it’s not uncommon to hear about individuals pivoting from working as a contracted employee
in one field to being a gig worker in another. One prime example is live event organizers who have
switched gears to organizing online conferences as needed, or content writers who had been
employed full-time by one company and start freelancing for a range of clients.
The gig economy has even helped keep restaurants afloat that would otherwise have shut their doors
forever during lockdown. While regular workers like servers and bartenders aren’t required during
lockdown, delivery people have stepped in to help get food from the kitchen hungry customers. This
helps keep chefs employed and lets restaurants pay their rent so that—with a little bit of luck—they
will be able to open their doors again once lockdown is over. It also creates work for deliveries,
thanks to a variety of different apps like Uber Eats, Deliveroo, and Wolt.
The pros and cons of the gig economy
While the gig economy has allowed millions of people to approach work in a completely new and
empowering way, it does come with its downsides. Before entering the gig economy yourself, make
sure you’re aware of the market’s pros and cons.
The advantages of a gig economy job
Working as a ‘flexi’ worker certainly comes with its benefits. For most people, these include:
Low barriers to entry. Anyone can enter the gig economy, regardless of their skill set.
Being able to adjust your own work-life balance.
Flexible working hours, often with the choice to decide when to work and for how long.
Having the choice of which kind of work and projects that you take on.
The ability to work from anywhere around the world.
The disadvantages of taking a gig economy job
Consider the disadvantages of gig work before you sign any contracts, or decide to leave your long
term employer for good.These disadvantages often include:
Not having your pension, health insurance, paid sick leave, or paid holiday covered by your employer.
Minimal job security with regard to redundancy packages or dismissal notice periods.
Gig economy platforms
As the gig economy rises, so do the online platforms that make finding work as a gig worker possible.
These websites and apps act as direct links between gig workers and the people and companies
looking for a particular service. They keep their business model lucrative by charging a minimal
service fee for connecting these two parties. Many of these international platforms—including
Airbnb, Deliveroo, Uber, Fiverr, and Amazon—are now some of the most profitable companies in the
world.
Questions
The gig economy is a model of work that give the workers
1. What is the gig economy? the freelance or part-time job, make work more flexible
2. What has affected the gig economy?
The pandemic pushed this model of work And the 2008 crisis
3. Give examples of gig economy jobs. Grafic disigner
Taxi drive
Delivery service
Babysitting
4. Which are the fastest growing sectors of the gig economy?
The creative sectors and knowlege-intensive industries
5. Where does the term “gig economy” come from? Why is it called the gig economy?
The term 'gig economy' provides to the jazz, because the therm 'gig' refer to individual jazz performances.
In economic terms gig' is almost synonymus of project or flex
6. What does “a gig worker” mean today?
People that hire to complete a specific task or projects
7. Why do people enter the gig economy?
Gig economy is a way to make extra cash
8. What effect did the 2008 crisis have on the gig economy?
Cause of the financial crisis many peolpe were unemployed as a result the demand of temporary work
grew exponentially as individuals were looking for ways to replace or supplement their income
9. How has the Internet affected the gig economy?
gig worker is able to find work anywhere around the world and moreover conect consumers with workers
10. How has the pandemic affected gig workers?
Gig economy become essential from provide services and needs to the consumers, moreover a lot of people lost their jobs
and turned to gig economy workers
11. What are the advantages and disadvantages of the gig economy?
Advantages: Disadvantages
-Flexi worker Not pension
low barriers to entry Not health insurance
adjust your work-life balance Not pais sick leave
Choise which kind of works take Not paid holiday
Work from anywere Minimal job security
