Gig Economy

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The gig economy is a labor market characterized by short-term contracts or freelance work as opposed to permanent jobs. In this economy, individuals work as independent contractors or freelancers, often connecting with clients or customers through online platforms.

The gig economy has benefits for those who want flexibility. Workers have the freedom to choose the kind of work they want to do and the number of hours they want to work. These jobs can range from driving for ridesharing, to writing, coding, tutoring, or creating video games or apps. Gig workers are their own bosses, they aren’t burdened with the constraints of traditional employment.

Both the workers and the businesses can adjust to changing demands. Companies can save on overhead, either passing these savings on to consumers or increasing profits. Some of the difficulties and ‘negatives’ include lack of health insurance and paid vacations. Earnings can be unpredictable and variable, resulting in financial insecurity and instability.

The gig economy has grown significantly: about 38 percent of the U.S. workforce now participate in some form of gig work. The trend accelerated during the pandemic as more people turned to remote and the flexible work options they preferred. Government data on this group of workers is incomplete as of today.

Experts say the number of gig workers continues to grow but this segment doesn’t fit well into traditional job segments and stratification. Accessing gig work through mobile phones may be helping many people avoid bankruptcies, as today two out of three Americans are living paycheck-to-paycheck, without savings, and with a lot of debt, but without the data, this can only be surmised.

(Source: The Evolution of Platform Gig Work by the University of Chicago (2023) / Graphic from Carlotta Dotta, CNN)

Without much hard data, it is possible gig work is ‘in addition to’ other traditional jobs that for many today is low paying. Last year, the number of Americans involved in gig work was estimated to be 20 percent, compared to 16 percent in 2022 (https://www.gigworker.com/blog/gig-economy-platforms). The Bureau of Labor Statistics will be developing—sometime later this year—a new approach to estimating the number of people working in temporary or alternative jobs.

What Are Some Popular Gig Platforms?

• Upwork—The platform is easy to access, and it features a scheduler, payment tracker, and work diary. Freelancers apply for jobs leveraging their recommendations. They showcase their skills and make bids for specific jobs. Freelancers create quality profiles to showcase their credentials. Upwork offers support for employees, from educational resources to a help desk.
• Freelancer—Doesn’t charge for listings and thus has a lot of these. Freelancer offers B2B communication tools (e.g., direct chat and file-sharing). Like Upwork, Freelancer allows you to create your custom profile to appeal to employers. They also provide “dispute resolution” services.The two above are the most popular, and I recommend you investigate both. In my own business writing career, these two will be my go-to sites for incremental gig writing opportunities. But there are others that deserve mention as well, some of which provide tools such as Bonsai or Fiverr Workspace. These are apps to draft proposals, invoice, and manage clients’ information. Think of these tools as mini-CRMs for freelancers:

• Fiverr

• Toptal

• Flexjobs

• TaskRabbit

• Guru

• LinkedIn

• AppJobs GAP

• Catalant

The Challenges Faced by Gig Workers

Organizational

Gig workers must complete the tasks involved, but also deal with numerous peripheral tasks. They must learn new platforms, find work, bill and collect from clients, market and sell themselves, and many entrepreneurial tasks normally associated with running your own business.

Emotional

Gig work is very personal, because you’re doing what you think you’re capable of doing rather than simply carrying out tasks dictated by a boss. Emotional stress can be even more draining and tiring than the work itself.

Identity

You wear many hats—what is your specialty? The process of moving between clients and work involves reclaiming and revising work identities. When they want gigs, what is the primary selling point of what they’re capable of doing?

Relational

You aren’t in the social setting of a company that has several employees. You don’t really have “co-workers” except for the occasional help you farm out to get the job done correctly and on time. Without career mentors, you can feel alienated, and perhaps miss opportunistic development opportunities that may have otherwise presented themselves. Yet, you are expected to build your business and your brand and grow it yourself. That can be tough.

Career Path

You forge your own career path. But with the lack of a prescribed path and without role models and mentors, your navigation challenge is solely up to you—and that too can be real pressure.

Summary

If you have an underutilized skill or passion, a side gig can provide you with a way to share your talents, gain additional income, and add to your professional resume. They give you the opportunity to explore your interests and passions. Whether it’s writing, crafting, or tutoring, you can find a side hustle that aligns with what you love doing with your time.

The Epoch Times copyright © 2024. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.