#workforcereform

With the advent of smartphone technology and increased use of the internet, more avenues have opened. This resulted in both individuals and companies to become more open towards the idea of hiring someone as a freelancer. The term ‘gig economy’ is not a new concept, but this past decade has seen it expand greatly. According to Intuit, the percentage of Americans in the gig economy was 34% in 2016 and is expected to grow to 43% by 2020. Consulting firm McKinsey says that there are currently around 68 million freelancers or self-employed in the US, with around 4 million Americans providing work through gig marketplaces like Lyft or Airbnb. Moreover, there are an ever-increasing number of companies outsourcing their work to flexible, expert, and non-payroll workers. These factors and statistics are indicating that there will be a growth of an agile workforce in the upcoming future.

Now, let’s grasp its definition and how does it work?

What is the gig economy?

The catchword ‘gig economy’ refers to an environment in which individuals work for short-term or temporary, for one or a variety of employers. This economy differs from traditional employment, as the jobs are not permanent. The key aim of people who are working in this area is to earn extra income. These people have statuses such as freelancers, temporary workers, and contract workers. According to the American Staffing Association, the majority of Americans (78%) see the gig economy as a modern way of describing the presence of this long-standing independent workforce. However, on a global scale, they are experiencing both the positive and negative consequences of this economy.