If you have not heard the phrases “gig economy” or “gig worker,” you probably soon will.
Essentially, a gig worker is an independent contractor, performing a specialized service to multiple clients and is not normally considered an employee of any one company. While the concept is not new, it is growing fast. According to the U.S. Bureau of Labor Statistics, in 2017, nearly 34% of US workers were gig workers. They expect that number to increase to 52% by 2023. Today, the gig economy contributes more than a trillion dollars each year to the U.S. economy.
There are many reasons for the consistent growth in the gig economy. These include benefits to the gig worker and benefits to the gig employer. In addition, COVID-19 presented new challenges to business operations. Hiring gig workers has proven to be an effective solution to many of those challenges.
For example, COVID-19 created an environment conducive to the rapid expansion of gig workers for food delivery services like DoorDash and GrubHub. COVID-19 also created a shortage of health-care workers, especially nurses. This has led to increased demand for traveling nurses, and their incomes have skyrocketed recently.
Technology advancements have also contributed to the rapid growth of the gig economy. Application development and websites make it easier to hire and manage gig workers. Companies like Uber and Lyft can easily connect with thousands of independent drivers.
The gig economy is here to stay and should continue to grow. This may present opportunities for many existing businesses if they are open minded, and they pay attention to changes in their environment. To ignore these changes could be detrimental in many ways.
