What Is The Gig Economy? The Complete 2022 Guide

Mar 29, 2022

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The gig economy: What exactly is it, and how does it function? This issue is becoming more relevant and essential.

Statista estimates that 85.6 million freelancers will be working within the United States by 2027. This means that freelancers will comprise an impressive 50.9 percent or nearly half of the U.S. workforce.

When you hear “gig economy,” you’re likely to be thinking of companies such as Uber or Upwork. But the gig economy includes much more than these platforms.

What Is The Gig Economy

This article will look at how the gig economy operates and the different kinds of gig workers, and the benefits and cons for gig workers.

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Keep reading if you’re seeking ways to earn money in the gig economy.

What is the Gig Economy?

A gig economy can be described as a non-profit market where individuals earn income through jobs that are on-demand, temporary assignments such as tasks, employment, or assignments. Most often, workers in the gig economy get jobs via apps or online platforms.

These workers aren’t employed. They are self-employed contract workers who usually work with a variety of clients. This work has existed for a long time, but the term has changed.

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The word ‘gig’ comes in the realm of performance arts where musicians, comedians, and other performers are compensated for their performances, referred to as gigs.’

Types of Gig Workers

The term “gig economy” includes various kinds of gig workers, which span nearly every field.

Many gig economy jobs are pretty new, while others have existed since the beginning of the world of commerce. Here’s a listing of various types and types of workers who work gigs:

  • Freelancers: Perform services for multiple clients
  • Consultants: Assist clients
  • Independent contractors appear like traditional employees; however, they are not employees.
  • Temporary Independent contract workers
  • Seasonal employees: Offer quick services through independent contractors

What is a Gig Worker?

A gig worker earns income by completing various smaller tasks for a range of customers. They could be private businesses or individuals.

The gig work is diverse and can range from running errands to programming. After a gig worker has finished a task, they’ll be able to work on the next job.

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Many people working in gig economies earn the amount of money they make per hour, while others earn money for each project or job. If an employee earns an hourly wage, it is common for them to decide when and for the length of time they work.

Many gig workers work part-time or full-time jobs, and they do gigs to earn extra income from their side.

10 of the Best Gig Economy Jobs

There are numerous types of job opportunities in the gig economy. Here’s a brief overview of 10 examples from the gig economy to highlight the potential opportunities.

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1. Ridesharing and Taxi Driving

All you require to sign up to ridesharing applications like Lyft and Uber is a smartphone and a vehicle. If you are eligible, you can begin earning money within a matter of minutes.

2. Education and Training

Numerous tutors, teachers, and instructors are independent contractors, providing training to many clients.

3. Deliveries

As with ridesharing, There are a variety of food and parcel delivery applications like Postmates and Grubhub. The gig workers use motorbikes, bikes, cars, and vans to make deliveries.

4. Administrative

Administrative positions are very popular as gig workers. Many people perform the role of virtual assistants working on projects for various clients.

5. Software Development

Software developers typically operate as independent contractors and consultants, supporting small-scale businesses to create websites, programs, applications, and games.

6. Accounting and Finance

Many gig workers do financial and accounting-related assignments for customers, like bookkeeping and tax preparation.

7. Digital Marketing

There are a variety of digital marketing jobs available in the gig economy. Ranging from managing Facebook advertisements to performing SEO (SEO).

8. Project Management

Project management is utilized across various industries to manage and oversee projects from beginning to end.

9. Writing

There are many writing freelance jobs available in the gig economy. They can include everything from writing advertisements to improving CVs.

10. Event Staffing Jobs

Many event planners require temporary help for parties, weddings, conferences, and more.

Working in the Gig Economy: Pros and Cons

The gig economy offers numerous advantages that traditional jobs don’t have. But, there are certain drawbacks.

5 Gig Economy Benefits

Let’s start with five benefits from the gig economy.

Low Barrier to Entry

It’s easy to get involved in the gig economy. There are numerous gig jobs in the economy that are easy and don’t require any qualifications or prior work experience.

Flexibility

The gig economy workers can choose their work hours and which clients they work with (or choose not to take on). This is why many gig economy workers opt to work at their homes.

Variety

The Gig Economy workers typically do multiple jobs for various clients, which helps to keep from becoming dull and make work exciting.

Independence

Self-employed gig economy workers are called self-employed. This means that the gig worker is the boss of her own. This means that most gig workers don’t need to go to meetings, attend progress reviews, or deal with workplace drama and gossip.

Opportunity to Try New Jobs

Many people have a small business idea that they’d like to explore; however, it doesn’t seem like a good idea to cut off their primary source of income to try it. Being a part of the gig economy can be a fantastic option to test various low-risk jobs.

5 Gig Economy Drawbacks

However, there are downsides to each job. There are five negatives of doing gigs.

1 Modest Pay

While many gig economy workers earn a good amount of money through gig work, making a significant income from small jobs can be difficult. This is especially true for non-skilled employment, such as delivery drivers and grocery store shopping.

2 Inconsistent Income

A flexible schedule comes with a flex income. People working in the gig economy often face changes in their earnings according to the quantity of work they can do.

3 Lack of Benefits

With no employer providing benefits, self-employed workers are accountable to pay for health insurance and pension plan.

4 Taxes and Expenses

Self-employed workers also need to pay taxes on their earnings through gig work. Additionally, those working in the gig economy typically have to buy and maintain the equipment and tools they require, including automobiles, computers, smartphones, and phone plans.

5 Potential Stress and Burnout

Being in the market for gigs can prove exhausting and stressful. It can be stressful not to know when your next task will be available. The pressure of managing multiple clients and jobs isn’t suitable for all.

7 Gig Economy Platforms to Find Online Work

Looking to join the gig economy? These are the seven most effective gig economy platforms for finding jobs on the internet:

  1. Upwork: Job opportunities in the Gig Economy that are open to freelancers (featured in the image below)
  2. Freelancer: Another general freelancing platform
  3. Fiverr is a platform designed to work in bite-sized increments. Many jobs pay the “Fiverr”!
  4. Fancy Hands: Virtual assistant gig economy jobs
  5. FlexJobs Find online jobs at reputable companies.
  6. Guru: Gig economy jobs for experienced gig workers
  7. Toptal is a gig economy platform that connects the top 3% of freelancers with companies.

12 of the Best Gig Economy Apps to Find In-Person Work

Do you prefer not to use computers or work in person? Here are the top 11 gig economy apps that can help you find jobs:

  1. Uber: Become a modern-day taxi driver
  2. Lyft: Another ridesharing app like Uber
  3. Instacart: Buy items and then deliver them to customers
  4. Amazon Flex: Deliver parcels
  5. Postmates: A complete delivery service app
  6. WAG Create money by walking dogs owned by other people
  7. TaskRabbit: Search for many gigs like shopping or home repairs
  8. Useful: earn cash from cleaning or furniture assembly
  9. Dolly: Help people move houses
  10. Uber Eats: Deliver and picks up and deliver food items
  11. Grubhub: A different Food delivery application
  12. DoorDash: Another application that delivers food

Final Thoughts

“Gig economy” gives many opportunities to earn additional income by doing small, in-demand jobs.

The gig work industry has existed for a long time, under various names. There are a variety of gig workers, including consultants, freelancers, independent contractors, and temporary workers.

Workers working in the gig economy may experience lower pay and unsteady income. Additionally, they are responsible for their tax and benefits and other costs.

However, gig economy jobs provide lots of flexibility and freedom and shallow barriers to entry.

If you’re looking to earn extra cash, Consider working as an entrepreneur today!

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