Gig Economy Explained

You have probably heard the term gig economy but with so many terminologies, it is often difficult to comprehend what it exactly means. Therefore, in this article I will attempt to explain it to create a basic yet much better and clearer understanding.The term gig economy refers to a labour market which is characterised by flexible and shorter term jobs which are made possible or at least much easier which is through either apps or digital platforms. It is a means of trading time and skill through online platforms, in turn providing service to a third party as a form of paid employment.

It is a global concept and here in the UK, there are a wide range of work arrangements in which ‘gig workers’ or certain freelance workers provide various and in demand services. Some common examples which we can all relate to are the several popular food delivery services, driving services, tutoring, freelance writing and various online tasks through certain platforms such as Fiverr. These workers are considered to be independent contractors rather than the traditional concept of employee and they also have the flexibility of choosing where and when to work. Instead of receiving a regular or standard wage, workers are instead paid for the ‘gigs’ that they complete

Here in the UK, the gig economy has expanded in the last few years due to advancements in technology, the desire and benefits of flexible working patterns and of course, changes in consumer and customer behaviour. Individuals are free to earn a good income on a flexible schedule but unfortunately this does raise certain concerns regarding job security, legal rights of workers and access to benefits, sickness pay and pension options and this does raise many discussions and dilemmas with the workers classification under scrutiny. Gig working varies significantly to those working on a zero contact and there have been several recent, high profile legal cases in the spotlight in recent years where contractors have fought for recognition and certain rights.

An increased number of workers are choosing this way of working independently with various reasons being cited. For some it is a necessity, for others it is because they enjoy what they do but many do it for the autonomy and flexibility of the job which can vary enormously from day to day. Call it what you will - independent working, freelance or side hustle but this type of working is here to stay for the foreseeable future.