In 2022, 60 million Americans — 39% of the total populace — engaged in some form of freelance work. Amidst economic upheavals across the United States, freelancers now contribute a whopping $1.35 trillion in yearly earnings to the economy.
In 2022, Upwork surveyed 3,000 professionals across the US as part of its Freelance Forward survey. The findings show that the freelance gig economy has boomed over the past few years, reaching record highs last year. In the survey, 77% of freelancers felt satisfied with their current income and their prospects for the following year.
The gig economy is, thus, thriving. But what exactly is it, and how does it work?
What Is the Gig Economy?
The gig economy involves gigs — task-based, often standalone jobs or projects. People take these gigs up on a freelance or part-time basis. Many of these are work-from-home opportunities, perfect for teenagers and stay-at-home parents.
Businesses often hire freelancers or gig workers to work on specific tasks as needed. Gig workers are independent contractors and not employed by their clients. So, they usually don’t receive the same benefits as regular employees of a company.
A lot of gig workers have a primary job and do freelance tasks as their side gigs. But some also work freelance on a full-time basis. Some typical gig work includes content writing, graphic designing, ride share driving, etc.
This entire job market is known as the gig economy. It offers workers flexibility instead of stability. People can choose their own hours, clients, and tasks. They can also choose where to work from and how. This makes gig work extremely accessible. For employers, the gig economy provides a diverse pool of talent they can tap into any time they need without having to commit to hiring someone.
The Current Problems With the Gig Economy
While the number of people joining the gig economy is increasing, there are still a few problems gig workers need to deal with. These include:
- No benefits: Being individual contractors, gig workers don’t get the same benefits as full or even part-time employees do. This means having to invest in your own business, getting your own insurance, etc.
- No job security: Gig workers don’t get any job security. They only work on a project-to-project basis. Sometimes, projects can get canceled midway. They can be fired or replaced without prior communication. They also never know when the next gig will come in, so it is hard to plan their futures.
- Lack of legal protection: Payment delays are already common. There are also often instances when freelancers never get paid for the work that they do. Going to court is an option, but it can be a long and tedious process.
So, Why Is It So Popular?
Being a gig worker comes with its own set of problems. But in 2022, 43% of Gen Z workers and 46% of millennials performed some sort of professional freelancing work. And the gig economy continues to grow in popularity. Why?
The Flexibility
Gig work lets you work when you want, how you want to, and from wherever you want. This offers people a lot of fluidity. People choose their clients and the projects they want to work on. It makes it easy to take up these jobs on the side while never quitting your primary job.
The Accessibility
Along with flexibility, gig work is thoroughly accessible. Homemaking parents can pick up freelancing gigs when their children are at school. Those with disabilities do not have to deal with travel and accessibility issues and work from their setup at home.
Shift in Priorities
After the Great Resignation, quiet quitting, and massive layoffs across industries, people’s priorities are massively shifting. Many now prefer the balance and flexibility gig work offers over full-time jobs. No more hustling away the significant parts of one’s life in a cubicle only to be fired without notice. Instead, people are prioritizing time spent with family and exploring their hobbies and wants over toiling away at thankless jobs in offices. Gig work gives them leave to do just that.
Offer Variety
It’s not always possible to make your passion your job. The risks can be too great. Gig work, instead, lets you keep your primary job so you can pursue your passion and build on the side. They offer variety to employee’s lives and work and may even make them better at their primary jobs.
Trends in the Gig Economy
The Rise of Artificial Intelligence
While AI may not be able to replace humans at their jobs, it can undoubtedly assist them with it. In the the future, gig work is expected to see an increase in dependence on AI tools. AI tools can help freelancers with data entry and analysis, content generation, and the nitty-gritty of project management so the humans can focus on more complex work.
More Blended Teams
Freelancers are going to work side-by-side with their full-time counterparts as businesses become more and more dependent on gig workers. Part time freelancers offer talent and specific skills on demand, which can prove invaluable to businesses.
Companies can now choose to access these diverse pools of talent when they need without having to commit to keeping an employee year round. Blended teams of full-time, part-time, and gig workers will continue to become more common.
More Tools and Services for Freelancers
As the number of freelancers grows, so do services dedicated specifically to them. These can be anything from project management tools to finance trackers. Industries across the board are slowly but surely introducing services and products tailored toward freelancers and their particular needs. From customized bank loans to insurance to products that let them manage their varied project in real-time, gig workers will soon have access to a lot of flashy new tools and products.