5 reasons Gig Economy is the Next Big Thing of This Decade
By: Meghana Agashe
Tags: Changing Careers, Side Hustle, Job Trends, Freelancing, Gig Economy

Understanding the Gig Economy

Freelancing, temporary work, self-employment, consultancy — there are multiple “job titles” to describe what being a part of the Gig Economylooks like. Chances are, most of us have been a part of this economy and earned money from it. Gig economy definitionstates that it is a free market system operating on short-term engagement, mostly temporary, and allows you to make money upon completing designated tasks. It is revolutionizing the job market and redefining how businesses are done. The most significant factor? It is growing at a tremendous pace. In fact, according to the latest gig economy datapublished by blogTO, gig economy jobsnow account for 10% of Toronto’s workforce.

Types of Gig Economy jobs

Broadly, gig economy jobscan be classified into two main categories — knowledge-based gigs and service-based gigs. Knowledge-based gigs include gig economy workerssuch as consultants, freelancers while service-based gigs consist of jobs like delivery drivers, pick-up and drop service providers. The most populargig economy appsfor service-based gigs include Uber, Lyft, Skip-the-dishes whereas Fiverr and Up-Work are some well-known examples of gig economy appsfor knowledge-based gigs. Irrespective of what category the work falls under, the common point to be noted here is there are no human bosses to make your lives miserable, you report to apps!

Reasons why the Gig Economyis booming

1. Digitization

There are several factors that are responsible for the positive gig economy trendsand the age of digitization is most important of them. Today, we live in the world of Automation and AI where technology is the key to getting our jobs done. This has led to mobility and ease of completing tasks from anywhere around the globe. I can be sitting in my office in Toronto and hiring a pest-control service to de-bug my house back in India. It has become that simple, that convenient. This digitization makes for a highly conducive environment for the sustainability and growth of gig economy jobs.

2. Flexibility

Gone are the days when people loved the steady income arrangements and stability associated with 9-to-5 jobs. This is the generation that values flexibility and a healthy work-life balance. Gig economy platformsgive you the freedom to choose your tasks and work as per your convenience. This is especially a crucial factor in the case of students and youngsters who juggle multiple roles. The element of flexibility associated with the gig economyhelps individuals to prioritize their lifestyle along with their earnings and hence, is becoming an increasingly lucrative option for a majority of millennials.

3. No stagnancy

The shifting trends of job loyalty and the inclination towards changing multiple jobs, trying different career paths, and exploring various opportunities of making money make the gig economya viable phenomenon for Gen Z. No commitments mean living on your terms and the opportunity to earn your livelihood while experimenting. Neither party involved has to invest anything in relationship building and so, you can get down straight to business. This dynamic nature of work is an integral part of all gig economy jobsand it is this nature that makes it such an exciting work option for many.

4. Complete customization

The fourth reason for the boom in gig economy trendsis from the point of view of a customer because, without customers, there would be no demand and without a steady demand, no economy can thrive. The gig economy workershelp customers complete highly specific tasks. Service providers catering to particular niches, precise needs and providing personalized services ensure that the customer doesn’t have to spend time doing tasks that they don’t want to and don’t have time for. There are multiple apps to choose from for any particular service today. From specific ones like ride-sharing and food delivery apps to generic ones that take care of your everyday chores and provide handyman services on demand, there is complete customization and 100% satisfaction. Moreover, the ease of usage, variety of sleek payment options, and one-click task completion ensure that the demand for gig economy platformskeeps increasing.

5. Minimum resources

From the point of view of all the parties involved- customers, businesses, and workers- getting the tasks completed as a part of the gig economyrequires minimum resources. The easy onboarding process and almost no spending of resources on extensive training, office spaces, and other employee benefits make gig economy workersa favored option for businesses. On part of the workers, the basic requirement is often a good internet connection and access to modes of transport. When it comes to customers, all they need is a gig economy appor an account on the gig economy platformto put in their requirements and get their work done.

While currently, the majority of gig economy workerspursue gigs as temporary jobs or side channels to make money, the shifting trends show more and more people taking this up as a substitute for a full-time job. Whether you are a gig economy jobseeker, worker or customer, the good news for you is, the gig economyis here to stay!