Why The Gig Economy May Have Jumped The Shark

As the traditional workforce has proven to remain bulletproof, does the gig economy still have a shot? The Great Recession sparked the infancy of the gig workforce, deeming it the economy of the future. As of 2017, companies among the likes of Airbnb and Uber have attracted 42-150million users, employing as many as 75 million gig workers to serve the aforementioned consumers.

 

Saying this, gig workers are still struggling. 60% did not have $400 to spare on emergency bills, hinting that majority of gig wages are not singularly or comfortably survivable. Furthermore, fewer gig workers feel they are doing their preferred type of work. 

 

In April 2019, America’s unemployment rate fell to half its rate in comparison to the Great Recession. Increasingly, as gig workers are not legally entitled to minimum wage regulations or insurance benefits, workers may have realized that gig jobs cannot replace traditional work. 

 

Furthermore, some gig-providing companies have annual employee turnover rates as high as 500%. This has lead to traditional employers capitalizing on the rise of flexible workers. In contrast, gig providers are trying to keep up with traditional employers, providing rewards for their contracted employers; however, to many workers, their efforts are too late. With premier companies in limbo and employees on strike, is the gig economy doomed?