Gig Economy: What is a Free Earning Economy

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What is Gigonomics and why it suffers most from coronacrosis

What is the gig economy photo: fabrikbrands.com

What do couriers, taxi drivers and freelancers have in common? All these gigs are part of the economy – a modern model of the economy, which includes an independent and short-term form of employment. What are the pros and cons of Gigonomics for workers, and what is the impact of the coronovirus epidemic on it – read the article Payspace magazine.

Short-term, temporary and project employment of civilian employees. Regardless of the scope of work, such artists work on small tasks within a certain time (for example, in shifts) or on a project basis. As soon as the work or shift is completed, the contractor moves on to another work. It can be a new job from the same employer or a completely different job. Also, as notes FlexjobsBoth men and women are equally involved in gigonomy. Men are more often employed in manufacturing, women in marketing and online sales.

Despite the fact that the term “gig economy” is relatively new in itself, a similar form of working relationship has long existed. According to a 2017 survey by the American Personnel Association, 78% of Americans surveyed view gigonomy as a new name for non-traditional forms of employment.

The term “gig worker” may include freelancers, temporary workers and contractors. according to research CIPDIn 2017, 1.3 million Britons were employed in Gigonomy. American Personnel Association InformThere were 10.6 million independent contractors in the United States as of May 2017 – this is 6.9% of all workers in the country. A survey by the organization showed that less than half of these employees rely on part-time jobs as their main source of income.

Edition Wired Noted the similarity of Gigonomics and the absence of a guarantee to receive wages that work under zero contracts and that both types of employment are a result of companies’ desire to reduce staff costs. At the same time, in Gigonomy, payment is made upon completion of the work (eg, delivery of an order or taxi), and payment under a zero contract is according to the number of hours worked.

Pros and Cons of Gigonomics

Photo: fabrikbrands.com

Coronacrysis has revealed many of the problems of gigonomics facing the industry for many years. Despite the fact that the free form of employment has some advantages, its lack is doubted.

The pros

Flexible work schedule. The biggest advantage of Gigonomy is the ability to choose work times and days independently, which can be only a few hours a week.

New opportunities. For some, a side job is an extra income, for others it is an opportunity to try yourself in another area to understand what you really want to do.

Quick earning In Gigonomics, contractors often receive money once the work is completed or once every few days. Furthermore, finding a part-time job for several hours is much easier and faster than a full-time job.

According to freelance platform FreelancehuntSince the beginning of quarantine introduced in Ukraine, the number of people wishing to work on freelance has increased by 43%. If on an average 550 to 800 people were registered daily on the freelance exchange, then in April this figure increased to 900-1200 registrations. Every third user stated that he “registered in relation to the situation in the country.”

minuses

Photo: fabrikbrands.com

Insecurity. Freelance workers often do not sign contracts and, as a rule, they are the first to be cut. Due to lack of employment contract, problems in getting salary can also arise.

Therefore, in 2019, the New York Taxi Driver Alliance filed a lawsuit against Uber Taxi Service, accusing the company of collecting sales tax and 2.5% insurance premiums with over 96 thousand New York drivers. Thus, from 2013 to 2017, the company paid taxes, cutting staff incomes.

Lack of profit. Often when looking for full-time candidates, employers try to attract job seekers with additional bonuses. For example, by issuing medical insurance, sick leave or education courses. For gig workers, such benefits are not provided.

Floating income In most cases, the contractor receives a salary upon completion of the work. In addition, it is often difficult for an employee to control how many tasks he can complete per day or per week. During the period of economic crises, when the demand for services falls, this question arises particularly rapidly.

burn out. Working in many places or during off-hours is not suitable for everyone. Some people believe that such work, despite a flexible schedule, becomes tedious and stressful after a while.

Hygonics and Coronacris

Photo: Edition.cnn.com

World Economic Forum among the main problems of gig workers during the period of coronacrosis Noted Declining demand for their services due to epidemics and security concerns. Nearly 70% of the 1.4 thousand volunteers polled were not satisfied with the level of support provided by their employers.

It is noted that about 70% of the workers were left without income, while only 23% had savings. More than half of the respondents said they lost their jobs, faced with a reduction in working hours by more than an hour. About 89% of gig workers and self-employed professionals are now looking for a new source of income.

About 70% of the respondents stated that they were not satisfied with the support received from their employers during the epidemic. More than half are expected to receive assistance from the government or the companies in which they operate.

In turn, the Payoneer payment system, often used for settlements with freelancers, noted, based on its research, that the situation in the freelance market remained relatively stable. In a new May report, the company reports the results of a survey of more than a thousand freelancers from more than 100 countries.

According to the data received, 40% of the respondents believe that the demand for their services is the same or has increased. At the same time, 32% stated that due to the proliferation of coronaviruses, the number of new orders had decreased significantly.

There has been a significant decrease in demand for 53% of freelancers serving clients in North America and Europe. In Asia and Australia, demand for freelancer services has declined slightly: 45% of respondents report a decline.
Ukrainian freelancers felt less impacted by the epidemic than their foreign counterparts. 56% of Ukrainian freelancers reported that the demand for their North American customers had either increased or remained the same; And 50% said the number of orders from Europe did not decrease.

According to Payoneer, worldwide freelance hourly rates remain stable despite the crisis. Nearly three-quarters of those polled say their hourly rates have remained unchanged during this period.

Read:
As if not before: how hotel and resort work will change after the epidemic
We look forward to the changes: Why the crisis may be the right time to start a business
Working during an epidemic: how coronoviruses affect residents of different countries
On leave at your expense: What to do if you lose your job during quarantine
How to save money with a Ukrainian salary: 9 tips
Quarantine financial tips

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