How does the gig economy work?<\/h3>\n\n\n\n
The gig economy includes all professionals who are freelancers, project-based workers, part-time hires, temporary hires, or independent contractors<\/a>.<\/p>\n\n\n\n Usually, the person looking for the services of such professionals posts the general description and requirements of the job on an online job board, freelance website, or even in the local newspaper.<\/p>\n\n\n\n Then, the professionals interested apply for the job.<\/p>\n\n\n\n All interested job candidates go through a combination of CV scrutinization, face-to-face, phone, or video interviews, as well as skill tests meant to help determine who has the best qualifications, experience, and predispositions to perform the requested job as required.<\/p>\n\n\n\n As an alternative, the matter of who performs the job may be on a first-come-first-serve basis \u2014 if the clients contact several professionals from a freelance website themselves, without posting the job. Or, it may simply be a matter of proximity. For example, a passenger requests a ride from a ride-hailing service platform and the driver who is currently located closest to the passenger comes to pick them up.<\/p>\n\n\n\n In light of all that, 3 main participants of the gig economy emerge:<\/p>\n\n\n\n Many specific professions are a part of the gig economy:<\/p>\n\n\n\n \u2013<\/p>\n\n\n\n As evident, the listed professionals are usually, by definition, called to provide one-time services.<\/p>\n\n\n\n People only need a music band, photographer, and videographer for their weddings once.<\/p>\n\n\n\n When someone\u2019s laptop breaks down, they\u2019ll likely need just a one-time visit from the local tech repair person.<\/p>\n\n\n\n Of course, tutors and babysitters may be required once or multiple times. But, in either case, their services will still be requested for a limited time period only, considering that the children will outgrow their babysitters, or master the tutored subject, or pass the exam.<\/p>\n\n\n\n The mere concept of \u201cgig economy\u201d appeared as early as the 18th century \u2013 although it won\u2019t be referred to as such for another two centuries.<\/p>\n\n\n\n Back in those days, the \u201cgig economy\u201d was a result of unpredictable employment patterns: many people had to work multiple jobs, and take every opportunity to help them earn a living.<\/p>\n\n\n\n The actual term \u201cgig economy\u201d originated from the name for live musical performances \u2013 in that sense, the term \u201cgigs\u201d was first used by jazz musicians <\/a>in 1915, or even 1905, to describe musical engagement.<\/p>\n\n\n\n Nowadays, the word \u201cgig\u201d<\/i> mostly refers to temporary, side jobs.<\/p>\n\n\n\n The term \u201cgig economy\u201d, however, wasn\u2019t used until the great recession of 2009, and it was first mentioned by journalist Tina Brown.<\/p>\n\n\n\n As Brown described it<\/a>, the recession urged people to pursue \u201ca bunch of free-floating projects, consultancies, and part-time bits and pieces<\/i>\u201d, all in order to make \u201dthe sum that allows them to hang on to the apartment, the health-care policy, the babysitter, and the school fees.<\/i>\u201d<\/p>\n\n\n\n Considering that it was the recession that drove people to take on part-time or temporary work, one could say that the post-2009 gig economy may have thrived for similar reasons to its unofficial counterparts from the 18th and 19th centuries.<\/p>\n\n\n\n In the decades following the 2009 crisis, the gig economy brought forward an increased earning potential which attracted even college-educated Americans who, at the time, earned as much as $75,000<\/a>, per year as gig workers.<\/p>\n\n\n\n However, the tables turned again after the pandemic outbreak in 2020. Millions of people jumped on the bandwagon of the gig economy \u2013 some of them because they have lost their nine-to-five jobs.<\/p>\n\n\n\n With an increased number of people switching their office cubicles for their living rooms, delivery services thrived, and the gig economy peaked yet again.<\/p>\n\n\n\n Today, about 36%, or 59 million Americans<\/a>, are part of the gig economy. Moreover, as many as 24.6 million gig workers from America<\/a> are also employed full-time.<\/p>\n\n\n\n However, these are all rough numbers \u2013 considering that anyone from babysitters to ride-hailing drivers<\/a> is considered to be a gig worker, as well as that many full-time professionals take on side gigs from time to time, the US government doesn\u2019t have a full grasp of how large the US gig economy actually is.<\/p>\n\n\n\n Some other estimates claim that there are as many as 75 million active gig workers<\/b>.<\/p>\n\n\n\n \ud83d\udca1 Want to take on some freelance gigs to complement your full-time daily job? Check out our guide on how to do it: How to start freelancing (even when working full-time)<\/a>.<\/p>\n<\/div>\n\n\n\n In recent years, there were 5 elements that triggered the growth of the gig economy.<\/p>\n\n\n\n Nowadays, with an ever-growing list of freelance websites<\/a>, it\u2019s much easier for freelancers to find gigs. Moreover, the variety of available gigs is rapidly growing, and gig workers can take their pick between general and niche-specific freelance job boards, platforms, and bidding websites.<\/p>\n\n\n\n Nowadays, with new, efficient freelancer apps<\/a> like Clockify by CAKE.com<\/a> emerging every day to make sure freelancers track time<\/a> spent on projects correctly, bill clients<\/a> accurately, as well as communicate and collaborate with companies and clients remotely, the gig economy has every opportunity to thrive.<\/p>\n\n\n\n Each time there\u2019s a crisis, the gig economy grows.<\/p>\n\n\n\n Similar to the 2009 recession, the COVID-19 pandemic has demonstrated a trend of wage cuts and layoffs. As a result, people have been forced to turn to other means to make the income they need, directing their attention towards gigs.<\/p>\n\n\n\n Even before the pandemic, most gig workers had already been working from home<\/a>, so the moment social distancing became standard, the gig economy rapidly grew.<\/p>\n\n\n\n Following the pandemic outbreak, any service that helped social distancing has proven greatly valuable. From delivering groceries and medicine to picking up restaurant orders, gig economy workers have had a great share in keeping society going.<\/p>\n\n\n\n On top of that, the number of gig workers hired in transportation-based services (TRNS) is estimated to reach 31 million by 2023<\/a>. The growing numbers prove that the change we witnessed is here to stay, and the gig economy will continue to soar.<\/p>\n\n\n\n Even before the pandemic, 43% of the active workforce<\/a> highlighted a flexible schedule with a better work-life balance as the No.1 expectation in their future work careers.<\/p>\n\n\n\n When the crisis took everyone by surprise, parents worldwide had to quit their full-time jobs because it became impossible to balance both 9-to-5 remote work and family<\/a>. This is where the flexibility and autonomy that the gig economy brings to the table became a band-aid solution.<\/p>\n\n\n\n The gig economy has proven its enormous importance in recent times: in 2020 alone, freelancers have contributed as much as $1.3 trillion<\/a> to the US economy, and $4.2 trillion to the global economy.<\/p>\n\n\n\n Moreover, an MBO partners\u2019 report shows that the overall number of Americans participating in the gig economy has increased from 38 million in 2020 to 51 million people in 2021<\/a>.<\/p>\n\n\n\n Some reports even forecast that as much as 50% of the US population<\/a> will be involved in the gig economy as early as 2027. So, the potential growth of the gig economy will only help it gain importance in the future.<\/p>\n\n\n\n If you\u2019re having second thoughts on whether joining the gig economy is worthy of your time, we\u2019ve compiled a list of the most popular gig economy companies and platforms to help you make up your mind.<\/p>\n\n\n\n We\u2019ve also put together a list of the highest-paid gigs together with a landing a gig <\/i>checklist to ensure you\u2019re entirely ready to dive into the gig economy as soon as you finish reading this article.<\/p>\n\n\n\n As mentioned, gig economy companies serve as a mediator between workers and consumers. Some of the most popular ones don\u2019t ask for special skill sets, or even active participation \u2013 you can be a driver or simply advertise your place for vacation rentals. In any case, gig economy companies are a great solution for both the full-time employees looking for an extra income and the people searching for a new, primary job.<\/p>\n\n\n\n Gig economy platforms and companies worth checking out include giants such as Uber, Instacart, Airbnb, Etsy, TaskRabbit, PeoplePerHour, and Outschool<\/p>\n\n\n\n Uber is a taxi-like service that lets you become a private driver for destination driving or food delivery. According to their statements, in 2020, Uber had over 5 million drivers<\/a> all over the globe.<\/p>\n\n\n\n To become an Uber driver, you\u2019ll need to:<\/p>\n\n\n\n \u2705 Be at least 21 years old and own a valid driver\u2019s license<\/p>\n\n\n\n \u2705 If younger than 23, you\u2019ll need to be licensed to drive for at least 3 year<\/p>\n\n\n\n \u2705 If older than 23, you\u2019ll need to be licensed to drive for at least 1 year<\/p>\n\n\n\n \u2705 Own a 4-door vehicle that meets Uber requirements<\/p>\n\n\n\n \u2705 Go through a background check<\/p>\n\n\n\n Lyft<\/b> and Doordash<\/b> are similar alternatives.<\/p>\n\n\n\n An online service that offers both purchasing and delivery services. By becoming an Instacart personal shopper, you can either shop and deliver items to the customers or be in charge of the shopping duty only. Both job types allow you to choose your own hours and don\u2019t require any previous experience.<\/p>\n\n\n\n To become an Instacart Personal Shopper, you\u2019ll need to:<\/p>\n\n\n\n \u2705 Be at least 18 years old<\/p>\n\n\n\n \u2705 Own a valid driver\u2019s license<\/p>\n\n\n\n \u2705 Have access to a vehicle<\/p>\n\n\n\n \u2705 Be able to work in the US or Canada<\/p>\n\n\n\n \u2705 Have access to a smartphone<\/p>\n\n\n\n \u2705 Be able to lift 50 lbs<\/p>\n\n\n\n Similar popular alternatives are goPuff<\/b> and Shipt<\/b>.<\/p>\n\n\n\n An online marketplace that lets you offer or require lodgings around the world. As of December 2021, there are at least 5.6 million Airbnb listings <\/a>across the globe.<\/p>\n\n\n\n To become an Airbnb host, you\u2019ll need to:<\/p>\n\n\n\n \u2705 Be responsive to guest requests<\/p>\n\n\n\n \u2705 Accept quest requests when possible<\/p>\n\n\n\n \u2705 Avoid cancelling on guests<\/p>\n\n\n\n \u2705 Keep a high overall rating as a result of previous requirements<\/p>\n\n\n\n Other popular choices include Vrbo<\/b> and VayStays<\/b>.<\/p>\n\n\n\n An e-commerce website that lets you offer or buy hand-made or vintage items. As of 2020, there are more than 4.3 million good sellers on Etsy<\/a>, with 81.9 million active Etsy buyers<\/a>.<\/p>\n\n\n\n To become an Etsy seller, you\u2019ll need to:<\/p>\n\n\n\n \u2705 Sell handmade items made by you<\/p>\n\n\n\n \u2705 Sell vintage items that are at least 20 years old<\/p>\n\n\n\n \u2705 Sell craft supplies that are handmade, vintage, or commercial<\/p>\n\n\n\n \u2705 Make sure the items you want to sell are not prohibited elsewhere or violate Etsy policies<\/p>\n\n\n\n Similar websites include Amazon Handmade<\/b> and Aftcra<\/b>.<\/p>\n\n\n\n An online marketplace that lets you offer or require freelance labor work locally. There are currently 27 different types of tasks<\/a> available for taskers on TaskRabbit.<\/p>\n\n\n\n To become a TaskRabbit tasker, you\u2019ll need to:<\/p>\n\n\n\n \u2705 Have a US Social Security Number<\/p>\n\n\n\n \u2705 Be over 18 years old<\/p>\n\n\n\n \u2705 Go through a background check<\/p>\n\n\n\n \u2705 Own a valid credit card<\/p>\n\n\n\n \u2705 Own a smartphone<\/p>\n\n\n\n Popular alternatives include Thumbtack<\/b> and Fiverr<\/b>.<\/p>\n\n\n\n An online marketplace where you can find hourly-paid projects that fit your current skills and qualifications. There are currently 2,700+ freelance projects available on the PeoplePerHour job board.<\/p>\n\n\n\n To find gigs at PeoplePerHour, you\u2019ll need to make the best bid and proposal for a job you\u2019re interested in.<\/p>\n\n\n\n Upwork<\/b> and Toptal<\/b> offer a similar gig economy experience.<\/p>\n\n\n\n An online education platform that offers you a chance to market your classes to students from all over the world. To become a tutor, you don\u2019t need any teaching credentials.<\/p>\n\n\n\n However, Oustschool advises its potential tutors to consider teaching the subjects they have experience tutoring or are interested in.<\/p>\n\n\n\n To become an Outschool teacher, you\u2019ll need to:<\/p>\n\n\n\n \u2705 Be at least 18 years old<\/p>\n\n\n\n \u2705 Live in the US, Canada, Australia, New Zealand, or the United Kingdom<\/p>\n\n\n\n \u2705 Have a fast internet connection (over 3Mbps both upload and download)<\/p>\n\n\n\n \u2705 Be able to confirm your identity and go through a background check<\/p>\n\n\n\n Similar platforms are Varsity Tutors<\/b> and Lessonface<\/b>.<\/p>\n\n\n\n As evident, there are a lot of gig economy opportunities for the workers But some pay much more than others \u2013 and, as expected, the higher-paying jobs and projects do require a special set of skills.<\/p>\n\n\n\n Here are the top 5 highest paying gig economy jobs<\/b> you can currently find online:<\/p>\n\n\n\n What\u2019s it about<\/i>: Deep Learning is a specific Artificial Intelligence (AI) function aimed at imitating the way the human brain works \u2013 your job is to develop and maintain a system that processes data, creates, and follows specific patterns involved in decision making, all similar to how the human brain handles these actions.<\/p>\n\n\n\n Qualifications and skills needed to get the gigs:<\/i><\/p>\n\n\n\n Places to find Deep Learning\/Machine Learning jobs<\/i>: Upwork, Toptal, Stack Overflow, GitHub, Scalable Path, PowerToFly, LinkedIn, Indeed, etc.<\/p>\n\n\n\n What\u2019s it about:<\/i> Blockchain developers carry out all work related to blockchain protocols, including research, analysis, design, as well as execution, and maintenance.<\/p>\n\n\n\n Qualifications and skills needed to get the gigs:<\/i><\/p>\n\n\n\n Places to find Blockchain development jobs<\/i>: Crypto. jobs, Blockchain Headhunters, Upwork, LinkedIn, Bitcoin.com, Crypti Careers, Blockew, Blockace.io, etc.<\/p>\n\n\n\n What\u2019s it about<\/i>: Ethical hackers are in charge of spotting vulnerabilities in systems in order to prevent potential malicious hackers from entering and taking advantage of the said system.<\/p>\n\n\n\n Qualifications and skills needed to get the gigs:<\/i><\/p>\n\n\n\n Places to find Ethical hacking gigs<\/i>: Indeed, Upwork, FlexJobs, LinkedIn, etc.<\/p>\n\n\n\n What\u2019s it about<\/i>: Build new payment tools, or integrate already-existing payment tools into apps and websites.<\/p>\n\n\n\n Qualifications and skills needed to get the gigs:<\/i><\/p>\n\n\n\n Places to find Cryptocurrency gigs<\/i>: Same as the places where you\u2019d look for Blockchain development jobs. Also, Guru, FlexJobs, Toptal, Upwork, LinkedIn, etc.<\/p>\n\n\n\n What\u2019s it about<\/i>: Robotics specialists are charged with creating concepts, crafting designs, and modelling both the mechanical and electrical components of robots.<\/p>\n\n\n\n Qualifications and skills needed to get the gigs:<\/i><\/p>\n\n\n\n Places to find Robotics gigs<\/i>: FlexJobs, LinkedIn, Upwork, SimplyHired, Indeed, etc.<\/p>\n\n\n\n No matter whether you\u2019re pursuing gigs that require a special set of skills or not, you can let the following checklist help you out when looking for ways to join the gig economy:<\/p>\n\n\n Choosing your own work hours does seem like a dream come true, especially if a gig is your side job.<\/p>\n\n\n\n If you are an employer on the lookout for employees, the gig workforce pool seems to offer an easy solution.<\/p>\n\n\n\n However, with all the perks comes a list of challenges. Let\u2019s get familiar with all the advantages and disadvantages of the gig economy so that you can decide if it\u2019s time to become part of it.<\/p>\n\n\n\n\n Time tracking software used by millions. Clockify by CAKE.com is a time tracker and timesheet app that lets you track work hours across projects.<\/p>\n\n According to gig work enthusiasts, here are the most common benefits of pursuing the gig economy \u2013 for both the gig workers and companies:<\/p>\n\n\n\n If you\u2019re having second thoughts about becoming part of the gig economy, maybe the advantages that come with being a gig worker could help you work your dilemma out.<\/p>\n\n\n\n Whether you\u2019re considering hiring on-demand or you\u2019ve been wondering if there\u2019s any benefit in going over a large pool of freelancers, we\u2019ve listed all the advantages the gig economy brings to companies to help you out.<\/p>\n\n\n\n In addition to the benefits, there are some disadvantages you might want to consider before embarking into the gig economy \u2013 for both the gig workers and companies:<\/p>\n\n\n\n Instead of leaping into the unknown, go over all the disadvantages that being part of the gig economy can bring forward.<\/p>\n\n\n\n Before you rush into hiring in the gig economy, make sure to go over all the cons we\u2019ve listed so that you can make an informed decision.<\/b><\/p>\n\n\n\n If you\u2019re in two minds about joining the gig economy, a bunch of questions might trouble you. We\u2019ve covered some of the F.A.Q. to eliminate the confusion.<\/p>\n\n\n\n The answer to the question of whether economy workers are independent contractors or employees is still an unclear one.<\/p>\n\n\n\n By the definition of their tasks, roles, and the length of time their services are needed, economy workers are closer to independent contractors (1)<\/b>.<\/p>\n\n\n\n As such, they are not entitled to company benefits.<\/p>\n\n\n\n However, countries like Canada and Spain have defined a new category of gig workers \u2013 dependent contractors (2)<\/b>. Dependent contractors<\/a> are gig workers who earn most of their income from a single source (at least 75%, in Spain, and at least 80%, in Canada).<\/p>\n\n\n\n These workers get at least some company benefits \u2013 some of these benefits include minimum rest periods and collective bargaining.<\/p>\n\n\n\n However, one US state, California, has made the effort to classify economy workers as employees (3)<\/b>, officially.<\/p>\n\n\n\n Namely, the California Senate passed Assembly Bill 5<\/a> on September 10, 2019, in an effort to provide a reliable test that shows whether an employee is an independent contractor (liable to 1099 tax forms) or an employee (liable to W2 tax forms).<\/p>\n\n\n\n All gig workers who pass the test to be employees are entitled to receive company benefits.<\/p>\n\n\n\n We touched upon the problem of the gig economy in the previous subheading about the proper classification of gig workers.<\/p>\n\n\n\n Here\u2019s the problem in more detail:<\/p>\n\n\n\n The \u201cdependent contractor\u201d classification is currently valid only in Canada and Spain. But, when compared to the current classifications, it seems worth the consideration on a more global scale.<\/p>\n\n\n\n The gig economy\u2019s growth led to further changes and additions to gig worker classifications. For example, US ride-hailing services tried to undo Assembly Bill 5 by providing an alternative \u2014 Proposition 22<\/a>. The primary purpose of the ballot initiative was for the drivers to remain independent contractors, with certain benefits (minimum wage, health insurance under certain conditions, etc.)<\/p>\n\n\n\n However, although California voters supported Prop 22, in August 2021, County Superior Court ruled it unconstitutional<\/a>. Since the companies filed an appeal, the Proposition still remains in effect <\/a>until the appeal process ends.<\/p>\n\n\n\n Although it may not be apparent at first, the gig economy hurts consumers as well<\/a>.<\/p>\n\n\n\n Experienced specialists for deep learning and robotics, as well as qualified truck drivers, are one side of the gig economy medal.<\/p>\n\n\n\n But, there is another side to the same medal.<\/p>\n\n\n\n Namely, some gig workers may not be trained enough to successfully carry out the gigs they were hired to do.<\/p>\n\n\n\n What\u2019s more, not all gig workers are worth the trust.<\/p>\n\n\n\n Some drivers may drive 15+ hours per day, as there are no official regulations that limit the number of hours they are allowed to drive \u2013 and, despite their best efforts, they may endanger themselves and their passengers.<\/p>\n\n\n\n Moreover, Lyft and Uber-related assaults<\/a> around the globe are not uncommon \u2013 on both the side of the drivers and the passengers.<\/p>\n\n\n\n Namely, during the pandemic year, the number of carjacking incidents and physical attacks on both Uber and Lyft drivers<\/a> significantly increased in the US. For example, in Oakland, California, the police department has noticed a 38% increase in carjackings<\/a> compared to 2019.<\/p>\n\n\n\n Passengers have also spoken out about the issues involving ride-hailing services, filing more than 5000 complaints against Uber assaults and over 4000 complaints against Lyft drivers<\/a>.<\/p>\n\n\n\n\n
Examples of gig economy workers<\/h3>\n\n\n\n
\n
What does \u201cgig\u201d mean in the gig economy? When did the gig economy begin?<\/h3>\n\n\n\n
How many workers make the gig economy?<\/h3>\n\n\n\n
Is the gig economy growing? Why is the gig economy growing?<\/h3>\n\n\n\n
1. The internet has made finding and organizing gigs easier<\/h4>\n\n\n\n
2. New technologies have made handling gigs easier<\/h4>\n\n\n\n
3. The crisis changed the way people work<\/h4>\n\n\n\n
4. Gig economy workers became essential to the changing society<\/h4>\n\n\n\n
5. People\u2019s work expectations and priorities changed<\/h4>\n\n\n\n
Why is the gig economy important?<\/h3>\n\n\n\n
Joining the gig economy<\/h2>\n\n\n\n
What are gig economy companies and platforms? And what does it take to join?<\/h3>\n\n\n\n
Uber<\/h4>\n\n\n\n
Instacart<\/h4>\n\n\n\n
Airbnb<\/h4>\n\n\n\n
Etsy<\/h4>\n\n\n\n
TaskRabbit<\/h4>\n\n\n\n
PeoplePerHour<\/h4>\n\n\n\n
Outschool<\/h4>\n\n\n\n
What are the highest-paid gig economy jobs? And how do you land such gigs?<\/h3>\n\n\n\n
\n
1. Deep learning\/Machine Learning jobs ($131.01\/hour)<\/h4>\n\n\n\n
\n
2. Blockchain development jobs ($109.77\/hour)<\/h4>\n\n\n\n
\n
3. Ethical hacking ($62.35\/hour)<\/h4>\n\n\n\n
\n
4. Cryptocurrency ($52.00)<\/h4>\n\n\n\n
\n
5. Robotics ($44.01\/hour)<\/h4>\n\n\n\n
\n
How to join the gig economy \u2013 the checklist<\/h3>\n\n\n\n
![\"How](\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2019\/12\/How-to-join-the-gig-economy-\u2013-the-checklist.jpg\")
<\/figure>\n<\/div>\n\n\nThe advantages and disadvantages of the gig economy<\/h2>\n\n\n\n
![\"Illustration\"](\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/default@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n \n\n\n\nGIG ECONOMY PROS<\/h3>\n\n\n\n
Gig economy pros for the gig workers<\/h4>\n\n\n\n
\n
\n
\n
\n
\n
The gig economy pros for the companies<\/h4>\n\n\n\n
\n
\n
\n
\n
GIG ECONOMY CONS<\/h3>\n\n\n\n
The gig economy cons for the gig workers<\/h4>\n\n\n\n
\n
\n
\n
\n
\n
The gig economy cons for the companies<\/h4>\n\n\n\n
\n
\n
\n
F.A.Q about the gig economy<\/h2>\n\n\n\n
Are gig economy workers employees? How are they classified?<\/h3>\n\n\n\n
How does the gig economy hurt the gig workers and the companies?<\/h3>\n\n\n\n
\n
And how does the gig economy hurt the gig workers and consumers?<\/h3>\n\n\n\n