The gig economy has been around for centuries. The idea of having a 9-5 job was only cemented after the industrial revolution. Before then, most people were earning their incomes by doing short-term contract jobs. How do we understand the gig economy and what does it mean to be a gigger in the 21st century?
Over the last decade or two, the number of freelancers and independent contractors has steadily been rising. With the fourth industrial revolution in full swing, the gig economy is booming once again with more and more people becoming a part of the freelancing community. The rapid development in technology makes freelancing an appealing, accessible opportunity for people in the workforce globally.
What is the gig economy?
The gig economy is a free market system where big companies, as well as start-ups and individuals, hire workers on short-term contracts. Instead of employing somebody full-time, independent contractors and freelancers are hired for their abilities to do specific jobs. The work-on-demand model is often more logical and affordable for employers. This is because they can hire freelancers with the specific skills they need for a short term and save time and money. Instead of taking the time to train somebody or spending money on a full-time employee for a skill they might only need once or twice.
“They can hire freelancers with the specific skills they need for a short-term and save time and money.”
All jobs have pros and cons. Gigging is definitely convenient for many employers and workers, but it certainly isn’t for everybody. There are quite a few drawbacks that could make people hesitant to follow the freelancing freeway. The many benefits of working in the gig economy are often overlooked though, and many who could gain from gigging shy away from it because they see only the negative sides of the economy.
Have you ever used Airbnb? Have you ordered an Uber? These are services that run in the this economy. We have all participated in the gig economy is some way or another. Many people are willing to work temporary jobs and because of this the gig economy is more affordable and efficient than for example hiring a full-time chauffeur or going to the hotel front desk to book a room. By using the available technology, people have access to the many perks of taking part in the gig economy.
Pros and cons of gigging
As a freelancer, you can decide your own hours and make your own decisions. If you feel like it on a blue Monday, you can even work from bed. Technology and digital platforms has made it possible for us to work from the desert or from a treetop – as long as giggers have access to a computer and internet, no job is impossible for the freelancer with the right skill set. Initially it might be frustrating and difficult to get jobs and you might not even like the gigs you land. After a while though, when you are more settled, when you have a bigger network, you can get to a point where you don’t need to take the jobs you don’t enjoy and still make enough money to support yourself.
“As long as giggers have access to a computer and internet, no job is impossible for the freelancer with the right skill set.”
Like any job, freelancing also has its downsides. In the modern digital world, more and more people work from home. Although you might have more flexibility when working on your own schedule, you might have to work more to make ends meet. Because giggers don’t get the benefits of most full-time positions, like pension funds and health insurance, sick days and paid vacation, you need to earn enough to cover these things for yourself. You have to manage your own taxes and if you want to buy a car or home, you need to find a way to qualify for a loan without a stable income.
“In the modern digital world, more and more people work from home.”
Money can be a big issue when freelancing. With the lack of the certainty of a salary, you have a lot less security in your day-to-day life. You need to plan ahead, save for slow months and hustle to get enough jobs to cover your costs. These factors can lead to increased stress and depression, as well as isolation and loneliness. The Harvard Business Review described the gig economy quite accurately as a produce or perish environment. The pressure to produce to be able to survive can have a big influence on your health – mentally and physically
Working from home has many comforts (pyjama days) but the lack of a set schedule can lead to anxiety, overworking and increased cortisol levels because of the stress of being “on call” all the time. The work-life balance might seize to exist, because you can always work in just one more gig tonight for that extra buck. This also leads to loneliness and isolation. You are at home – working all the time – and get so caught up in your world that you forget that there is a world behind your computer screen if you do digital freelance work. If your gigs involve going places, it can have the same effect. Even if you are around different people every day, that does not mean you interact with them on a close personal level.
With the gig economy taking over, it is good to be aware of these risks, but you should also know that, if you aren’t already, you might be gigging soon. and even if freelancing is like walking on a tightrope, there are more and more security measures being put in place to protect freelancers.
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