The State of the Gig Economy in 2020

The way in which people work to earn an income has changed significantly in recent years and it’s positively impacting the economy. This has a lot to do with innovations in technology, especially those that make it easy to work remotely. It's also because technology has made the world a smaller place. Decades ago, the idea of platforms like Facebook and Instagram would have been unfathomable. Being able to share a wealth of information with people around the world has been transformative in ways that cannot be measured. This is something that we often lose sight of because it's a daily reality. When it comes to the current gig economy, there's a lot to consider. Let's explore what's happening in 2020.

About the Gig Economy

What exactly is a ‘gig?’ Decades ago, a gig was simply a musical booking or some other opportunity to showcase a talent. That definition has expanded over the past decade because a gig can be anything related to a project or task. Specifically, anyone who earns money from work performed without being an employee will probably have a gig. These are essentially independent workers that perform services like rideshare driving and freelance writing. There are also gigs that involve the completion of different administrative and repair tasks. With this type of gig, the worker is paid by the consumer and that payment is facilitated by a platform created by a company like TaskRabbit.

Why Gigs Are Popular

One of the reasons why gigs are so popular is because they make it easy to earn a quick buck. Some people choose to find a gig for the purpose of supplementing their income, while others find a gig for a change of pace. What's remarkable about the gig economy is that you can find ways to put cash in your wallet immediately. For instance, some people take surveys for money on the side. While you might not think this seems like a viable way to earn money, there are plenty of college students and busy homemakers that would beg to differ. It's the kind of gig that anyone can do if they have a few minutes to spare and a smartphone or computer.

The benefits of the gig economy are far-reaching. For instance, someone that has the skills to make repairs around the house can leverage that talent to provide needed services. This exchange increases spending as the gig worker is able to supplement their income. While there are clear benefits, we certainly cannot ignore the challenges. With a gig, you only get paid for the task that you complete, which is much different than earning a salary or an hourly wage. For some people, this is a problem. However, there are others that thrive while performing task or project-based work.

Changing Views on Work

There are a good number of people that prefer to work a gig because they appreciate the flexibility. It often depends on one's perception and priorities. A gig can offer the freedom that might not be available as an employee. Other people prefer working a gig because it enables them to leverage their talents to earn an unlimited amount of money. The possibilities are truly endless.

Decades ago, it would have been hard to imagine a gig economy. That is clearly no longer the case because it's thriving and there are no signs that gig work will slow down anytime soon.