Gig economy: The future of work
As workers forego the typical 9-to-5 work day for more independence and flexibility, the Gig Economy is rapidly expanding and evolving. Millions of freelancers, temporary workers, Airbnb hosts, ride-share drivers, and the self-employed are creating a significant shift in what “work” looks like.
First, what is the Gig Economy?
The Gig Economy is a labor market characterized by the pervasiveness of contracts or freelance work instead of typical, permanent jobs. With an estimated 50 to 68 million gig workers in the US, people are earning incomes in a new way.
The Gig Economy emerged in the aftermath of the financial crisis and gained traction as digital platforms began proliferating. Those who lost their steady jobs during the financial crisis were out looking for jobs to make ends meet. At the same time, the Internet and smartphones were blossoming and putting power in the hands of individual consumers, quickly giving rise to vast digital marketplaces.
Resourceful individuals could participate in these digital marketplaces to capitalize on their excess capacity — whether it be with their time, their cars, or even their homes. Thus, the Gig Economy was born!
The Gig Economy’s current status
Today, the gig workforce is growing 5 times faster than the US employment growth. In fact, 20–30% of the US labor force is now made up of contractors and self-employed workers. And gig workers worldwide are making significant economic contributions — approximately $1 trillion in the US in 2015 and approximately £109 billion in the UK in 2015.
Demographic shifts are also playing their part in fueling the Gig Economy. Survey upon survey shows the proclivity of millennials toward flexible work hours and a “being-my-own-boss” mindset. The Gig Economy lends itself perfectly to their attitudes and thus it is not surprising that millennials are more likely to be gig workers compared to Gen X and Baby boomers.
Tools for a remote worker
One of the biggest concerns of a gig worker is filling their project pipeline. In a Contently survey, 35% of independent writers and businesses said that securing enough work was their biggest daily obstacle. In order to tackle that issue, online marketplaces and apps are launching in a range of categories, to assist gig workers in finding work.
Snagajob is one of the many apps created in recent years to serve the Gig Economy. Claiming more than 75 million registered hourly workers and 300,000 employer locations, Snagajob blurs the line between a job and a shift. They focus on creating instant connections so gig workers can get jobs and employers can them in minutes.
Designed by Harvard MBA students, HourlyNerd is a similar platform, connecting companies with business consultants. Businesses can compare consultants’ profiles, and users can bid on projects, creating a flexible process to find a job.
The future of the Gig Economy
The Intuit to The Freelancer’s Union predicts that 40% of the workforce will be freelancers by 2020, with 80% of large corporations planning to increase their use of a flexible workforce.
Small and large businesses alike will develop networks of contingent workers, minimizing their fixed labor costs and expanding their talent pool.
And as time goes on, we will continue to shift from full-time jobs to part-time gigs, eventually leading to no full-time employees. Instead, there will be platforms and services to match workers with gigs, leading to ever-evolving teams, virtual offices, and a new way to recruit and manage talent.
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