Gig economy

The gig economy is a way people work by taking short-term jobs instead of permanent ones. These workers, called gig workers, often do freelance or side jobs.^[1]

The gig economy includes:

• Companies that offer short-term jobs.
• Workers who take these jobs.
• Customers who use these services.

Many gig jobs are found through apps or websites (like Uber or Airbnb). Instead of a fixed salary, gig workers get paid per job or "gig." The term "gig" comes from musicians doing one-time performances.

Companies prefer this system because they:

• Don’t have to pay for benefits like health insurance or sick leave.
• Save money on office space and equipment.
• Can hire skilled workers for specific tasks without a long-term commitment.

• Flexibility: They can choose when and where to work.
• Work-life balance: They have more control over their schedules.
• Extra income: Some do gig work alongside their regular jobs.

Wome challenges faced by gog workers include:

• No job security or benefits.
• Some clients refuse to pay for work.
• Companies may claim ownership of creative work without fair pay.

• Ridesharing (Uber, Lyft)
• Food delivery (DoorDash, Instacart)
• Online payments (PayPal)
• Freelance services (writing, design, consulting)
• Rental services (Airbnb)

• In 2016, gig work grew by 50% in 10 years.
• By 2021, 16% of U.S. adults had earned money through gig jobs.
• In 2018, 150 million people in North America and Europe were gig workers.
• The gig economy is worth $1 trillion in the U.S.

Some of the largest companies in the gig economy are:

• Uber (ridesharing)
• Airbnb (home rentals)
• DoorDash (food delivery)
• PayPal (online payments)
• Shopify (e-commerce)

The gig economy is growing steadily and changing how people work. However, legal protections and fair pay are still big concerns for many gig workers.

1. ↑ "What is the gig economy?". McKinsey & Company. August 2, 2023. Archived from the original on November 27, 2023. Retrieved November 30, 2023.