Exploring the Gig Economy: Pros and Cons

The gig economy is a term colloquially used to describe online and freelance-based work that is performed on a project or task-by-task basis. Some of the most popular types of gig work involve ride-sharing, food delivery, delivery services, or freelance online jobs. It also includes engaging in a variety of short-term projects, often through platforms such as Upwork, Freelancer, Fiverr, and MTurk. This type of work has grown over the past decade, and is estimated to increase further in the future.

The Advantages of the Gig Economy

There are many pros to partaking in the gig economy. Perhaps the most prominent is the fact that this type of labour is often flexible with regards to hours and commitments. Equally, the work can often be performed remotely, allowing for those who have other commitments an opportunity to earn money from a distance. Additionally, gig economy jobs are often open to people from any profession, so long as they possess certain specific skills.

The Drawbacks of the Gig Economy

As with any job, however, there are some cons associated with this type of online work. One of the biggest drawbacks of gig economy jobs is the fact that they offer no job security. Contracts often involve unpredictable commitments, and those are regularly terminated, meaning a steady flow of income is hard to ensure. Additionally, the pay for such work is often lower than that of a traditional job and workers are usually not covered by a workplace's health insurance.

Gig Economy Opportunities

Despite drawbacks, the gig economy offers people unique opportunities. People who are creative by nature can easily make a career of freelance writing, coding, designing, or more. It also offers an opportunity for those out of work to quickly find part-time income. For retirees, the gig economy offers an appealing way to supplement their income and enjoy the flexibility that they won't find on a 9-5 job.

Gig Economy Pitfalls

One of the potential pitfalls of working within the gig economy is the absence of workplace culture and communal work environments. This can be isolating for some, while others may enjoy the lack of office politics and bureaucracy. Additionally, the increase of gig jobs in recent years has been mirrored closely by a decrease of traditional jobs, leading to fears of a lack of benefits in the long run.

Pros and Cons of the Gig Economy for Businesses

The gig economy also holds pros and cons to businesses. On one hand, businesses often benefit from the economic savings of not needing to cover employment taxes and insurance premiums on workers. Additionally, the low commitment and ability to switch projects quickly makes them appealing for companies wanting to outsource tasks. On the other hand, employers must now compete with gig platforms for labour, while also accepting the lack of commitment out of workers.

In Summary

The gig economy is an emerging trend that offers many opportunities for those looking for flexible, freelance work. It has advantages and drawbacks, however, and should be viewed thoughtfully by businesses and workers before taking leaps of faith to join or dive into the gig economy.