What Does Gig Economy Mean?

By Author: Anthea Johnson
Total Articles: 45
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Gig economy refers to the rapidly-growing phenomenon in the market where, people are provided work for specific tasks and not regular employment. Here, there is no usual employment contract and money is paid for each task, on piece-rate basis. Contrary to general opinion, gig economy is not synonymous with self-employment, for the work allotted under former is comparatively irregular.

In gig economy, people rendering services are not protected by things such as minimum payment, labor laws, to cite a few. This growing trend (of gig economy) is attributed mainly to the attempts of organizations to drastically reduce their operational expenses. But, it is rather interesting to note that, the number of people preferring to go with this type of work is on a steady increase.

Flexibility of working hours and the ability to be in control of the quantity of work undertaken, etc, are given as reasons for that.

Do you want to know as to from where the term “gig economy” has come? The word “gig” in “gig economy” has conventionally been used to refer to musicians who perform based on invitations and get payments ...
... for every performance, separately. Just like gig economy, there is no fixed salary even for these performers!

Notwithstanding the arguments of leading entities of gig economy, it has to be conceded that there are numerous problems (in gig economy). It’ll be relevant to succinctly focus on some of those negatives of this pattern of work.

Apart from the aforementioned aspects of lack of minimum pay and absence of legal protection, workers are deprived of paid leaves. So, if one is sick or wants to go on a holiday, they can’t expect money for the corresponding period.

Many companies exert excess pressure on workers to deliver more. Sometimes, this pressure comes in an indirect way, by promising big incentives.

Similarly, the surge in gig economy has led to manifestation of one more issue. Government is now not able to obtain clear picture on the rate of unemployment. For a person to be categorized as being unemployed, they have to be without a conventional job for specified period. Here, part-time tasks, which are the basis for gig economy, are not taken into account.

Owing to the above point, law-makers are in a dilemma, with regard to bringing legislations to regulate gig economy.

In spite of the above-mentioned points, it appears that there would be no hindrance to gig economy’s growth. Countless workers spread across different parts of the globe are getting attracted to the freelance work of this economy. It will not be an overstatement to say that gig economy is likely to be the work of future. Let’s look at few of the pertaining market projections.

There will be more apps like Upwork and Uber, increasing the opportunities available to freelance workers.

A substantial chunk of youngsters shall take up jobs in gig economy, well before completion of their education.

Organizations are going to be ready to fund the higher education of their gig workers, to ensure that they (gig workers) remain loyal to them.

People (gig employees) would enhance their technical skills, for the purpose of earning more as well as keeping in pace with competition.

The most striking prediction is that, individuals working in the economy (gig) can now look forward to improved regularity, in terms of income.

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