Freelance Fall: The Gig Economy
The Gig Economy is an economic sector consisting of part-time, temporary, and freelance jobs (Dictionary.com)
According to Molly Turner, a professor at University of California Berkeley, “this past decade’s growth of the gig workforce has been driven by the development of new technologies that enable transactions directly between providers and consumers, and the difficulty of finding traditional, stable jobs” The number of people self-employed through the gig economy has grown 19 percent between 2005 and 2015.
So, How does one enter the Gig Economy?
Well, you are typically one of three parts of the gig economy.
The platform - Uber, Task Rabbit. Upwork
The worker - The individual who is providing the service
The consumer - The individual who receives service
So what does this mean for you?
Pros for the workers:
Flexibility: Workers can choose when and where they want to work.
Greater independence: Workers will typically work for himself or herself
A variety of jobs: From Uber to Task Rabbit to Upwork, there is plenty of options for work.
Cons for the workers:
No benefits: Most Corporations will not pay for contracted employees which most workers are :(
Quarterly taxes, personal expenses: Instead of coming out of pocket bi-weekly, you are now having to hoard money for taxes. Plus, personal expenses have been restricted under Trump’s new tax law so everything charged may not be able to be expended.
Isolation, lack of cultural solidarity: You have no office, and therefore no coworkers which can sometimes be lonely.
Inconsistent Income: Because your income depends on demand, there will be lulls in income.
Burnout and Exhaustion: You may have to work harder to earn the same amount as a typically Corporate American
Pros for the company:
Lower cost: They just provide the platform which lowers operating cost.
Ability to scale quickly: We saw how fast Uber blew up.
A diverse pool of flexible workers: There are lots of eager and waiting people ready for employment.
Cons for the company:
Less reliable workers: I have had a lot of shitty drivers and at the end of the day, their performance is a reflection of company standards.
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