Fueled by the Internet, technology, and a bevy of professionals no longer satisfied with the regular nine-to-five, the gig economy is a phenomenon that’s challenging our understanding of work and life balance.

Examples of the gig economy in action abound. You can see it all around you, from the guy delivering your pizza to the Uber driver who takes you to the airport.

High-level employment is part of the gig economy too, with business consultants, engineers, creatives, and other professionals doing project-based work that can usually be done anywhere, like a beach in the Bahamas.

The gig economy is relatively new but growing fast since it offers employers productivity when they need it and workers flexibility for work-life balance.

But, the gig economy isn’t a total bed of roses. There are concerns about consumer and worker protections, which many states and international bodies like the International Labour Organization (ILO) are trying to address.

We talk about what the gig economy is, what’s driving it, and what’s in it for workers and employers.

What is the gig economy?

For a growing number of people around the world, the regular nine-to-five where you’re attached to a single employer on one payroll is no longer attractive. So, they’re opting out, choosing to gain various income streams and work independently, project-to-project, in what’s known as the gig economy.

The gig economy is a new name for an old thing – that is, the exchange of labor for money between people or between individuals and companies. The Internet has fueled the phenomenon through digital platforms that facilitate labor for projects with a few mouse clicks.

Is the traditional 40-hour workweek dead, then? Not exactly. There’s still something to be said in favor of having a full-time job with benefits and a steady paycheck. But, the allure of betting on yourself, working from anywhere, and the flexibility that comes with gig work, is an attractive option to many.

On the other side of the coin, companies and clients relish the opportunity to hire talent quickly for specific or specialized purposes, without the overhead of hiring full-time employees.

What is driving the growth of the gig economy?

The gig economy is still in its infancy and currently accounts for between 1-3% of total employment, according to the OECD. That number is rising fast, though. The last decade alone saw a five-fold increase in the gig economy.

In 2019, the gross volume of the gig economy stood at USD $204 billion, with transportation services accounting for 58% of that value. Gig transactions are expected to grow at a rate of 17% to USD $455 billion by 2023 thanks to factors such as:

On the supply side of the gig economy:

• Evolving attitudes about peer-to-peer sharing: People are more open to sharing underutilized assets for profit.
• Rising rates of digitalization: More people in underserved regions are now smartphone and Internet users.
• Cultural shifts that embrace flexibility: Evolving work-life balance needs are pushing for alternatives to the traditional nine-to-five.
• The rising costs of living: The shrinking of the middle class is leaving workers seeking extra income through the gig economy.

On the demand side:

• The rising desire for “on-demand” services: This demand is especially high for millennials who have become accustomed to having their needs met instantaneously through platforms.
• Massive amounts of venture capital funding: This has facilitated “direct-to-consumer” marketing for many of the gig economy platforms, leading to more customers.
• Greater outsourcing: Both corporations and SMBs are countering the rising costs of operation by outsourcing short-term tasks and other non-critical functions to independent contractors.

In general, gig economy workers want greater flexibility and independence and may need extra cash while opportunity, demand, and lower costs are driving growth on the demand side.

Would you join the gig economy?

Now, over to you. What surprises or excites you the most about the gig economy and freelance work? Comment below and share this article with friends you know would be interested.