A gig economy refers to a market system which is freelance and temporary work positions are more common, companies offer employment to independent workers on short term contracts. Examples of work arrangements, which are prevalent in a gig economy are part-time hires, project-based staff, freelancers, and independent contractors. The gig economy has been fueled by the use of digital platforms and work tools. This has enabled work to be more mobile.
The gig economy allows freelancers to pick temporary projects and jobs from any geographical location while employers can pick the individuals suited for a specific project. The gig economy is solely dependent on digitization as more people embrace the use of working software to maximize work efficiency. The pressure on businesses to cut down costs in the workforce has forced many organizations to opt for a flexible workforce.
The gig economy also suits millennials who have the tendency of changing their jobs several times throughout their professional life. The gig economy enables workers to learn new skills using various digital tools and software. The gig economy embraces all professions and workers. The downside of working in the gig economy is that it’s difficult for employees and employers to maintain relationships for the long term.