Gig economy is one that depends heavily upon temporary or part-time positions. They are filled by independent contractors and freelancers. This is in lieu of permanent workers.
This has advanced with the progression of the digital arena. Concepts such as remote work are now entering the mainstream consciousness.
There are pros and cons for workers.
Pros:
- flexibility with hours
- freedom to work from most anywhere
- variety of jobs
- pay
Cons:
- no benefits
- isolation
- more stress
- tax consequences
Many corporations were built on the idea of gig workers. Examples are:
- Doordash
- AirBNB
- Uber/Lyft
Behind this idea is less expensive, more efficient services.
COVID-19
The lockdowns in response to COVID-19 helped to facilitate the advancement of the gig economy. A great deal of money was spent on IT services to allow employees access corporation infrastructure from their homes.
It was an acceleration of a longer term trend started a decade ago. The idea of remote work is nothing new. Technology is making it far easier for companies to operate in this manner.
This is helping with the shift deeper into the gig economy. As more are able to work remotely, we can expect a lot more services outsourced. From a company perspective, this is an advantage, at least financially.