The idea of a gig economy came to prominence during the pandemic when many people were searching for jobs online to supplement the income they lost during the lockdown but it has been around far longer than that. Even after the pandemic, many people are looking for work on a contractual basis. Some do this in addition to regular employment, while others do only do gig jobs. In either case, the gig economy is on the rise.
What is the Gig Economy?
The gig economy is when workers work for an employer on a contractual basis. They are not considered true employees and will be paid according to their contract. In many cases, this contract will expire after a certain task is complete or after a certain period. That said, gig workers are rehired by their employers if there are more tasks to be done.
When Did the Gig Economy Start?
The gig economy has been more commonly known throughout history as “freelancing.” The term originated from private soldiers who worked only for pay and were known as “free lancers.” In other words, mercenaries. However, this term would come to apply to all different kinds of tasks where the worker isn’t under the direct authority of the employer and is free to leave once the contract is complete or to cancel the contract themselves in many cases.
The Modern Gig Economy
The modern gig economy has been around for decades but took off thanks to the Internet. By searching online, a person can find temporary contract work much faster and easier than ever before. Websites and job boards dedicated to connecting freelancers and employers, such as Upwork and Fiverr, have also become popular. Of course, these websites take a cut and oftentimes have many fees that both the freelancers and the clients must pay.
The Pros and Cons of the Gig Economy
While there is a lot to love about the growing gig economy, there are some negative aspects to it as well. People who are thinking about working a “side hustle” or might be considering doing gigs full-time need to be mindful of the drawbacks so that they can make an informed decision. But first, let’s look at the positive aspects of gigs.
Pros
More freedom than a normal job
Much easier to quit a bad job and/or abusive employer
Work as much or as little as you would like
You’re typically only answering to one person
Can do it from home in many cases
You can charge as much as you want
Can take advantage of currency values
Having a college degree is less important most of the time
The hiring process is usually much faster and easier than a normal job
Cons
You will spend much more time looking for employers
Building a reputation can be harder, especially at first
You get no benefits such as healthcare, sick leave, or retirement
You have to be wary of scammers and con artists
If your employer doesn’t pay you, there may not be much you can do about it
AI is taking over many gig jobs
The pandemic flooded the online workplace with more competition than ever
There is always someone willing to work for less than you
The big one here to take into consideration is that you won’t be getting any benefits as a gig worker. This means that you’ll have to provide for yourself regarding healthcare and retirement. You’ll also need to set aside money for when you’re sick or for an emergency. To be a full-time gig worker you need to be extremely good at managing your finances.
Another thing you need to consider if you want to be a full-time gig worker is how you’ll get clients. If you use sites like Upwork, they can have a lot of control and power over you similar to an employer but with none of the benefits. You can try finding gig jobs on your own, such as cold calling/emails, but it can be much more difficult.
The Future of the Gig Economy
The gig economy is continuing to grow faster than ever before. Not only is this because of the pandemic but also because more people are being laid off in recent years as well. As a result, the gig economy is thriving but some would say that it is overcrowded. Competition with other gig workers for jobs is more fierce than ever before and you’ll have competition from around the world looking for the same jobs you are.
On the flip side of this employers love the booming gig economy. It allows them to hire workers for specific tasks without having to give them any benefits. Also, with the gig marketplace becoming more crowded, it’s easier for them to find people willing to do your job for less pay. The current gig economy favors the clients, not the freelancers.
Should Gigs be a Full-Time Career?
Achieving what would be considered a “middle-class” lifestyle used to be possible by doing gig work as long as you always had clients lined up, however, things are starting to change. With the growing gig economy becoming much more lopsided in favor of employers, many freelancers are struggling to maintain their previous income levels and lifestyles. Being able to provide themselves with healthcare and retirement is also becoming a lot harder.
To make gig jobs a full-time career these days, it takes much more planning and hustle than it used to. Finding good clients is more difficult thanks to increased competition from other freelancers willing to do your job for less and the growing number of freelancers in general. This in turn means you will spend more time looking for work than actually working in some cases.
Overall, the gig economy seems to be going from a source of full-time employment back to a source of supplemental income for most freelancers. Many freelancers who once worked gigs full-time are now looking for traditional employment to make ends meet. This seems like it will be the case for the foreseeable future as the gig economy continues to grow.
The idea of a gig economy came to prominence during the pandemic when many people were searching for jobs online to supplement the income they lost during the lockdown but it has been around far longer than that. Even after the pandemic, many people are looking for work on a contractual basis. Some do this in addition to regular employment, while others do only do gig jobs. In either case, the gig economy is on the rise.
What is the Gig Economy?
The gig economy is when workers work for an employer on a contractual basis. They are not considered true employees and will be paid according to their contract. In many cases, this contract will expire after a certain task is complete or after a certain period. That said, gig workers are rehired by their employers if there are more tasks to be done.
When Did the Gig Economy Start?
The gig economy has been more commonly known throughout history as “freelancing.” The term originated from private soldiers who worked only for pay and were known as “free lancers.” In other words, mercenaries. However, this term would come to apply to all different kinds of tasks where the worker isn’t under the direct authority of the employer and is free to leave once the contract is complete or to cancel the contract themselves in many cases.
The Modern Gig Economy
The modern gig economy has been around for decades but took off thanks to the Internet. By searching online, a person can find temporary contract work much faster and easier than ever before. Websites and job boards dedicated to connecting freelancers and employers, such as Upwork and Fiverr, have also become popular. Of course, these websites take a cut and oftentimes have many fees that both the freelancers and the clients must pay.
The Pros and Cons of the Gig Economy
While there is a lot to love about the growing gig economy, there are some negative aspects to it as well. People who are thinking about working a “side hustle” or might be considering doing gigs full-time need to be mindful of the drawbacks so that they can make an informed decision. But first, let’s look at the positive aspects of gigs.
Pros
More freedom than a normal job
Much easier to quit a bad job and/or abusive employer
Work as much or as little as you would like
You’re typically only answering to one person
Can do it from home in many cases
You can charge as much as you want
Can take advantage of currency values
Having a college degree is less important most of the time
The hiring process is usually much faster and easier than a normal job
Cons
You will spend much more time looking for employers
Building a reputation can be harder, especially at first
You get no benefits such as healthcare, sick leave, or retirement
You have to be wary of scammers and con artists
If your employer doesn’t pay you, there may not be much you can do about it
AI is taking over many gig jobs
The pandemic flooded the online workplace with more competition than ever
There is always someone willing to work for less than you
The big one here to take into consideration is that you won’t be getting any benefits as a gig worker. This means that you’ll have to provide for yourself regarding healthcare and retirement. You’ll also need to set aside money for when you’re sick or for an emergency. To be a full-time gig worker you need to be extremely good at managing your finances.
Another thing you need to consider if you want to be a full-time gig worker is how you’ll get clients. If you use sites like Upwork, they can have a lot of control and power over you similar to an employer but with none of the benefits. You can try finding gig jobs on your own, such as cold calling/emails, but it can be much more difficult.
The Future of the Gig Economy
The gig economy is continuing to grow faster than ever before. Not only is this because of the pandemic but also because more people are being laid off in recent years as well. As a result, the gig economy is thriving but some would say that it is overcrowded. Competition with other gig workers for jobs is more fierce than ever before and you’ll have competition from around the world looking for the same jobs you are.
On the flip side of this employers love the booming gig economy. It allows them to hire workers for specific tasks without having to give them any benefits. Also, with the gig marketplace becoming more crowded, it’s easier for them to find people willing to do your job for less pay. The current gig economy favors the clients, not the freelancers.
Should Gigs be a Full-Time Career?
Achieving what would be considered a “middle-class” lifestyle used to be possible by doing gig work as long as you always had clients lined up, however, things are starting to change. With the growing gig economy becoming much more lopsided in favor of employers, many freelancers are struggling to maintain their previous income levels and lifestyles. Being able to provide themselves with healthcare and retirement is also becoming a lot harder.
To make gig jobs a full-time career these days, it takes much more planning and hustle than it used to. Finding good clients is more difficult thanks to increased competition from other freelancers willing to do your job for less and the growing number of freelancers in general. This in turn means you will spend more time looking for work than actually working in some cases.
Overall, the gig economy seems to be going from a source of full-time employment back to a source of supplemental income for most freelancers. Many freelancers who once worked gigs full-time are now looking for traditional employment to make ends meet. This seems like it will be the case for the foreseeable future as the gig economy continues to grow.
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