Gig Economy

Gig Economy

A gig economy is a free market system in which temporary positions are common and organizations contract with independent workers for short-term engagements. In a gig economy, temporary, flexible jobs are commonplace and companies tend toward hiring independent contractors and freelancers instead of full-time employees. A gig economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career. The term "gig" is a slang word meaning "a job for a specified period of time" and is typically used in referring to musicians. Examples of gig employees in the workforce could include freelancers, independent contractors, project-based workers and temporary or part-time hires.

Due to the large numbers of people willing to work part-time or temporary positions, the result of a gig economy is cheaper, more efficient services, such as Uber or Airbnb, for those willing to use them. Those who don't engage in using technological services such as the Internet tend to be left behind by the benefits of the gig economy. Cities tend to have the most highly developed services and are the most entrenched in the gig economy. While not all employers tend toward hiring contracted employees, the gig economy trend often makes it harder for full-time employees to    develop fully in their careers since temporary employees are often cheaper to hire and more flexible in their availability.

There is a wide range of positions that fall into the category of a "gig." For example, adjunct and part-time professors are contracted employees as opposed to tenured or tenure-track professors. Colleges and universities can cut costs and match professors to their academic needs by hiring more adjunct and part-time professors.

The term “gig economy” was popularized in America around the height of the 2008-2009 financial crisis, task-based labour has evolved and has become a significant factor in the overall economy. America is well on its way to establishing a gig economy, and estimates show as much as a third of the working population is already in some gig capacity. Experts expect this working number to rise. In the modern digital world, it's becoming increasingly common for people to work remotely or from home. This facilitates independent contracting work as many of those jobs don't require the freelancer to come in to the office to work. Employers also have a wider range of applicants to choose from as they don't have to hire someone based on their proximity. Additionally, computers have developed to the point that they can take the place of the jobs people previously held.

Economic reasons also factor in to the development of a gig economy. Most times, employers cannot afford to hire full-time employees to do all the work they need done, so they hire part-time or temporary employees to take care of busier times or specific projects. On the side of the employee, people often find they need to move around or take multiple positions to afford the lifestyle they want. People also tend to change careers many times throughout their lives, so the gig economy is the reflection of this occurring on a large scale.

Digitization has also contributed directly to a decrease in jobs as software replaces some types of work to maximize time efficiency. Other influences include financial pressures on businesses leading to a flexible workforce and the entrance of the Milennial generation into the labor market. The current reality is that people tend to change jobs several times throughout their working lives and the gig economy can be seen as an evolution of that trend.

In a gig economy, businesses save resources in terms of benefits, office space and training. They also have the ability to contract with experts for specific projects who might be too high-priced to maintain on staff. From the perspective of the freelancer, a gig economy can improve work-life balance over what is possible in most jobs. Ideally, the model is powered by independent workers selecting jobs that they're interested in, rather than one in which people are forced into a position where, unable to attain employment, they pick up whatever temporary gigs they can land.

Thus, the gig economy is part of a shifting cultural and business environment that also includes the sharing economy , the gift economy  and the barter economy .