What is ‘Gig’ Economy?

There is no perfect definition of the term called “gig economy,” it’s mainly categorized as any work which is flexible, whether is paid low or high where people are offered temporary, part-time jobs through website or app. Ex. Self-employed, Contractors, Freelancers.

Gig Economy Future Prospects –

According to the latest research, 34% of U.S workforce comprises of freelancers. Most of the companies have started hiring freelancers according to their needs. On a global scale, the growth of entrepreneurship is increasing at a higher rate. Uganda ranks No. 1 in the world for entrepreneurship as 28% of its workforce is self-employed.

The Future of Gig Economy is hard to calculate, But according to the report by McKinsey & Company, the gig economy is going to add $2.7 trillion to global GDP by 2025.

The Reasons for the Rise of Gig Economy –

There are many grounds for the increase in trend of gig economy, on-demand workforce as it is a self-employment kind of thing. Technology, on the other hand, is growing and creating more and more innovations on the way. Nowadays across the world, the workers want to survive and succeed, people on the other hand especially the younger generations not only want to work simply, but they want more control over their work-life balance, passionate career or simply they want to be their own boss.

The Gig Economy is estimated to be about 34 percent of the workforce and expected to rise around 43 percent in the span of 3 to 4 years.

The Impact of Gig Economy –

Most of the companies are not able to accommodate scores of vacancies into their workforce. Though the number of Gig Economy workers are increasing, this culture of independent, freelancing work may not always be suitable for workers. In the coming years, permanent work for IT professionals may not be available. With rising trend of Gig Economy, the Top rated experts may get paid high, but the average ones may get paid below average rates.