A gig economy is a market model where temporary positions are common, and companies hire unpaid workers to be temporary employees. A gig is a slang word for a job that lasts a certain term. Musicians generally apply this term. Typical employment types of employees in the freelancer's workforce could include independent contractors, team workers and temporary or seasonal employees.
People usually choose jobs several times during their working lives, especially millennials; the gig economy jobs can be seen as an evolution of these trends. The shift from the traditional way of work to the software directly leads to reduced jobs and is currently replacing certain forms of work to maximize time efficiency.
Understanding the Gig Economy
According to a study conducted by McKinsey Global Institute, the gig economy was estimated to affect 2.4 million people at any time in 2016 and was expected to reach 8.9 million by 2021.
The gig workers offer new kinds of services such as crowdfunding and information. The service is cheaper and more efficient than other services like air travel and food delivered services, according to experts at the World Resource Institute of Technology (WRC), and the University of California is such an example. In addition, the team offers an array of services to people who do not need to rely on the services of others.
However, not all experts agree that the companies should be seen as true competitors to businesses like Uber or Deliveroo.
Geolance defined gig economy startups as those using online platforms to connect consumers and service providers in various ways at a reasonable price.
The advantages of Gig Economy
Gigs are flexible for people who want part-time employment; they can choose a gig work that suits their schedule. The companies also benefit from the gig economy because they know exactly how much they will pay for gig workers, and a worker's benefits do not come as an extra cost to employers. In addition, the gig worker has no particular path, such as union representatives or employment law attorneys can negotiate conditions in the workplace.
However, the workers do not receive any benefits such as job security, health insurance or sick leave, and they have to pay some extra fees for these services. The economy also offers a lot of opportunities for people who are displaced from their jobs.
For example, Canada's Workforce Innovation Board offered an opportunity to displaced workers.
The Board issued a survey to determine the value of gig workers in Canada, and one person who was employed as a freelance worker for five years said he had been able to create three jobs through the company.
Another survey conducted by the Freelancers Union found that 69% of freelancers had retirement accounts, compared to 44% for employees.
Freelance workers' health insurance is much more suitable than an employee's health insurance because freelance users can choose their coverage and benefit limits.
Finally, gig economy companies can be willing to pay more for qualified workers than traditional companies.
Gig worker who uses Geolance is paid $ 63 a day for some of the best-rated talents. In addition, freelance workers like Sarah Riley can use Geolance to increase their income during school breaks. She said she worked part-time jobs on campus before relying on freelance work by using gig economy platforms, such as Geolance.
Geolance is one of the gig economy startups and offers mapping services; users can get directions from point A to point B.
The gig economy also offers opportunities for people who have difficulties searching for regular employment, such as single parents or retirees. But according to experts at WRC, these gig economy workers are often not paid fairly. They tend to receive lower wages than full-time employees outside the gig economy. Also, gig workers have fewer employment rights and cannot join a labour union to negotiate their wages.
In addition, companies benefit from the ability to avoid paying benefits such as holiday pay for part-time or temporary workers.
Criticism of the Gig Economy
In traditional careers, displaced workers get out of favour in some industries to keep up a career path. As a result, long-standing bonds between employees and clients can diminish. In theory, workers in such gigs are more traditional workers than traditional workers. According to Mr. Defterios, it could discourage investment in related investments that would otherwise be profitable to chase.
Also, the companies can underpay gig work because they know that these workers have no other employment options. For example, teens who work for a company such as Uber used to start working at a fast-food restaurant, but due to the low salaries, they were not able to do so.
Originally in the gig economy, companies did need to offer benefits such as sick leave, health care and retirement. However, this has changed in many cases. According to the Federal Bureau of Labor Statistics report, businesses are increasingly offering benefits such as paid time off.
In addition, companies will continue to replace minimum wage workers with robots because these machines eliminate risks, including complaints or injuries of workers, who can then reduce potential costs. Also, using these robots would help to avoid paying taxes for part-time or full-time employees.
A large number of companies offering services through the gig economy have been accused of exploiting their workers. In some cases, workers had to sign contracts that demanded they pay a fine if they were fired.
Due to this nature of work, not all businesses have asked their workers to participate in unpaid training, and they are working without any benefits.
Finally, the gig economy has also been criticized for its role in pushing down wages. For example, a study conducted by Princeton University economists found that competition from Uber was partly responsible for reductions in the salaries of taxi drivers up to 30 percent and forcing them to work longer hours.
According to some experts, we need more regulations on the companies involved in the gig economy, such as Uber and Lyft. These regulations are to protect workers and ensure that everyone is getting a fair deal, including companies. However, some economists have warned that too much regulation could push up prices or make it harder for people to find work.
Factors Behind Gig Economy
US officials say almost a third of the working population has gig capacities on the way to a gig economy. Experts expect its workforce to increase because of this nature of jobs. Gig workers tend to work part-time primarily and to work from home. Employers, therefore, have greater diversity as they don't have to recruit based on proximity with the right candidates. In addition, computers have been developed and allowed you to work from the comfort of your own place much more efficiently.
According to experts, some factors have played a role in the development of the gig economy, and these include:
The Internet allowed flexibility for those in traditional careers such as telecommuting.
There is also an increase in self-employment due to rising numbers of freelancers who are not affiliated with any company or organization.
The rise of gig work
Canadians are active in the gig economy. In fact, around one in five is a gig worker.
The majority of these freelance workers work part-time.
This figure is expected to increase because of the increasing number of people willing to engage in gig jobs.
For example, the Canadian Freelance Union said that by 2022 as many as 50 percent of workers would be freelance.
For example, those in traditional jobs are entitled to paid time off for medical appointments and dental check-ups. Nowadays, there are more than one million freelancers in Canada.
The rise of gig work has been attributed to factors such as:
- The increased number of people who prefer flexibility (such as working from home) or can not afford to pay high health and retirement benefits;
- The increasing popularity and ease with which technology allows you to add, the abundance of online platforms (such as Geolance) that allows gig workers to find jobs;
- The increase in temporary or part-time work.
Experts say the gig economy is here to stay in Canada. Indeed, many people are already working in this way and would continue to do so.
Geolance created work and employment forms and models outside the traditional framework by providing accessibility, convenience and price competitiveness.
According to a recent study conducted by Upwork, an organization that connects freelancers with employers reported that many US workers are doing gig work for supplementary income. This is a 42 percent increase from 2014 to 2015; it also reported that the highest percentage of gig workers were part-time, and one-third were under the age of 35 years.
Many experts admit that companies have made used ideas presented by freelancers and gig workers and incorporated them into their business operations. Still, at the same time, they have been criticized for offering minimum wage, flexible schedules or no benefits to freelancers and those who use services provided by some gig-oriented companies.
Who is part of the gig economy?
This figure of the total Canadian employment ak hours of work (an average week) by age group:
- 35 to 44 years old: 16.6;
- 25 to 34 years old: 15.4;
- 17 to 24 years old: 12.9;
- 45 and older (over 55): 11.7
In general, most Canadians do not work the same number of hours. According to Statistics Canada, gig workers in Canada have been between the ages of 25-34 years old. During this period, many young people are students with part-time jobs and those who have recently graduated from school.
The gig economy is not very large in Canada, but there are opportunities for freelancers or those who want to be self-employed. A major platform that offers gig workers an opportunity is Geolance. Geolance allows peer-to-peer work, or gig work offers flexibility for both employers and freelancers because there is an open schedule.
Independent workers are consciously aware of the dangers and efforts to reduce that social isolation. Many are ambivalent about formal peer groups that a lot of think are insipid substitutes for collegiality. Nevertheless, all had people she contacted in exchange for their support. As the authors said, a successful gig economy is achieved because of a balance between economic viability and vitality.
A freelancer works directly with a company that requests a service and gets a goal for his company or project. They monitor hours of work, billings and taxes. The most likely types on the job include those who give specialized gig work. Many freelancers use platforms for marketing their unique skills. It usually depends on their personal network of companies and individuals to find their next venture. In addition to the marketing aspect, they control their business. They also use such gig work platforms as Upwork to sell their skills and find customers.
Independent contractors aren't considered employees of an enterprise. Instead, they're working on a project or projects with the understanding that they're to end the project. Independent contractors have no benefits from any one company and pay self-employed taxes.
While employed or hired in any business for longer periods - a temp worker has a certain deadline. Some examples of a temporary job are seasonal workers who could work during the holiday season. Once the holiday ends, the company says the seasonal employees can leave their jobs.
The self-employed workers do not have responsibilities in any company. It shall be of their own business or responsibility to keep their work. The term self and independent contractors are synonymous, and the taxation system states that such a person is self-employed.
Gig worker vs. employee
An employee is employed by a company and paid by that company earning an agreement of salary or wage. On the other hand, the gig worker will work on some projects. An employee in gigs can complete any work assignment after they can no longer work with the company. Gig workers under short or long terms do not receive benefits, retirement or healthcare infrastructure, and no tax will be collected automatically.
It has traditionally been argued that gig work is less secure and less volatile because of its nature. However, it's generally more unstable and less secure - as compared with alternative sources of employment. For example, a freelance writer may work through a company in writing an article about artificial intelligence. They will have to decide if the efforts of writing an article were worth more than the time spent alone. In general, gig work is less secure since there are no guarantees to earn money.
Industries that hire remote freelancers and Gig Economy Jobs
A large variety of jobs can be done from home in our computer services category. Software developers design and test the software used in computer applications and sometimes in interactive online gaming. As a trainer or teacher, you help people learn new techniques. You can serve as a corporate trainer, part-day coach/teacher or tutor.
Managing projects can help ensure coordination of projects from start to end. This includes working with external providers and internal vendors, management of the budgets and dealing with delays.
Administrative staff assist executives in support of administrative communications, including handling incoming and outgoing communications. Administrative staff can focus on a specific area of business, such as art and design.
Even in the virtual world, we need customer service representatives to answer our current orders. In addition, representatives will assist customers by providing information relating to customer accounts, products and services. Recent freelance customer service jobs: Processing invoices is also an administrative function that freelancers can perform. When processing is performed in-house, you are working as a virtual accountant. The duties of a virtual accountant include compiling records of transactions and managing financial data such as profits and losses.
Produce or die
There are enormous stakes in independent work financially and existentially. But productivity seems to be an intense preoccupation of every person interviewed: productivity is the self-expression and antidote to precariousness.
Precarious workers often looked to the future when talking about their work and lives. They spoke of hope, anxiety, plans, expectations — while also grappling with what they have now: a job that pays poorly and offers few prospects for advancement.
To sum up, gig workers are to perform work under the direction of customers. It is allowed by law and protected by labour laws, fair competition laws, consumer protection laws, copyright and contract law.
Geolance is a search engine that combines the power of machine learning with human input to make finding information easier.