The Gig Economy is Changing Everything – It’s Not Too Late to Get Started

The Gig Economy

We have progressed from the dependency relationship of a boss or employer to a sort of synergistic and independent partnership known as the Gig Economy.

It’s a transactional system that allows freelancers or contract workers to create primary or secondary income while charging for each job or project performed in a client’s favor.

The advancement of technology has contributed to this great trend. For the Gig Economy, it is usually an App designed by a few (or maybe a trio) of insane people concerned with solving issues in new ways and sits in the middle of said client and freelancer/contract worker.

According to Financial Times, the term gig economy was coined in the United States more than a decade ago, and it was a phenomenon that grew in popularity following the financial crisis of 2009, which resulted in large-scale job losses in many businesses.

This circumstance resulted in new types of hiring, both for persons who wish to work autonomously and for businesses looking to cut expenses.

The gig economy is a work structure in which both the employer and the self-employed worker have a lot of freedom and flexibility, and it’s mostly done through the use of digital platforms for remote hiring.

The model of the gig economy is gaining popularity in the marketplace. Many entrepreneurs, SMEs, and large corporations choose to recruit professionals for specialized tasks on a short-term basis rather than utilizing traditional hiring methods, and it is easy to believe that this tendency will only continue to develop, especially following Covid-19. making most like that the

According to the Independent Work and entrepreneurship Report carried out by Workana, freelance work, which is a great reference in this new economy, grew by 80% in Latin America during the last year making freelancing the future.

Technology has surely influenced the growth and implementation of the gig economy, with the personalization of the workday causing this tendency to take hold as the economy of freelancers and digital nomads, with geographical preference added. These are professionals who are more productive in non-corporate settings because they feel more at ease working from home. It is important to remember that a professional’s work environment has a significant impact on performance.

According to the Workana report, 56 percent of freelancers work from home, while 26% work from a shared office, and 18% work from a co-working location.

Reasons You Should Join The Gig Economy 

Every day, more professionals are opting for self-employment. We invite you to learn about the key benefits of this work system:

Great Flexibility 

One of the key advantages of the “gig” model is its flexibility. Gig workers have the freedom to schedule their time as they see fit and to choose the projects or contracts they want to work on based on their talents, expertise, and financial resources. Freelancers are able to live according to their lifestyle. 

Encourage digitization

Remote recruiting companies have taken a significant step toward digital transformation.

They are companies that understand the value of new technologies and use them to expand their remote workforce and, more importantly, to solve problems. All of this is accomplished without the cost of employing dozens of people or investing thousands of dollars in infrastructure or equipment, such as homes and hotels in the case of AIRBNB, vehicles in the case of Uber, or plumbing wrenches and other tools in the case of TaskRabbit, to name a few examples.

Talent with No Limits

A freelancer or contract worker can often deliver his or her services via the internet from any location in the world, regardless of distance or boundary.

To be effective as a gig worker, you must have access to the internet, a computer, or a smartphone; be disciplined, and have the aptitude for service and communication skills to maintain the best relationships with consumers, who will ultimately grade the service based on its quality.

The number of remote and online professionals is increasing.

Every day, the Gig Economy expands its footprint within the job sector. Remote work platforms are used by businesses of all sizes to locate consultants or freelancers to assist them in areas where digital expertise and skills are required, such as digital marketing, strategy and management, web development, data science, and many more fields.

No job ties

When a project is completed and all obligations have been met, the contractor-worker connection ceases, at least for the time being.

If the teleworker performs well, the contractor may contact him again, emphasizing the necessity of providing excellent service.

Create a steady or additional source of income

To make a living solely on “gigs” or online freelance work, you’ll need a great deal of dedication and talent to market your skills. However, with a little work, you can earn 3 to 5 times as much as you would in a permanent job.

Those who want to be self-employed have more options to do so permanently thanks to the increased demand for “gig” jobs.

It’s Never too late to get started.

According to smallbiztrends, the gig economy shows no sign of diminishing. With this being said, by 2027, 60% of independent professionals will make up 60% of the workforce.

The Gig Economy has shown a great uptrend, with the recent global pandemic supporting this trend as people were majorly forced to work from home. More workers would tend toward this trend of working and it is soon to become a working lifestyle. Some statistics have shown that the gig economy can be the backbone of the global economy. Let’s have a look.

Size of The Gig Economy

By the end of 2022, the Global Gig Economy is expected to be valued above $347 billion. Design and computer freelance tasks are the most popular on a global scale, with 59 percent of gig workers performing them, but an oversupply of talent in these industries is lowering wages.

In the United States, 44 percent of gig workers regard freelancing to be their principal source of income, with 60 percent of workers doing so at least weekly.

The Gig Economy Development

The global gig economy is anticipated to increase from $204 billion in 2018 to $455 billion in 2023, representing a 17.4% compound annual growth rate.

In the Western world, the number of freelance employees is gradually expanding. For example, the number of freelancers in the United States is expected to increase from 57 million to 86 million by 2027, while the UK’s gig economy workforce more than doubled from 2016 to 2019 to 4.7 million workers.

Financials of Gig Workers

Freelancers charge an average hourly rate of $21 globally. In the United States, the number of high-earning freelancers (those with a reported income of more than $100,000) is increasing year after year, and it now stands at 3.1 million (20 percent of the workforce).

The majority of full-time freelancers in the United States are unprepared for an unforeseen financial setback, with 80% stating that an unexpected expense of $1,000 would be tough to cover.

Satisfaction of Gig Workers

Overall, gig economy employees are happier with their jobs: 79% of full-time independents stated they prefer working on their own to working at a traditional job (in the US).

Gig workers are more concerned about their financial security: In comparison to regular full-time employees, 45 percent of full-time gig workers had a high Economic Anxiety Index score.

The majority of freelancers are concerned about their working conditions: Employer-based benefits are unavailable to 54% of gig workers (in the US, data from 2017).

Conclusion 

Although the future of the gig economy is unknown, experts have predicted an increase in freelancing tasks in the coming months – and years. By the end of 2022, the number of workers working in America’s gig economy is predicted to reach 43%. Companies who are looking for a short-term, risk-averse, cost-effective employment choice amid uncertain economic times have found gig workers tempting.