With today’s volatile economy, it’s not surprising that people are opting to do a side hustle to make ends meet or earn more money. Side Hustle Nation reported that 39%, or roughly 80 million, Americans are doing just that. As a result, the gig economy, also referred to as the sharing economy or access economy, is becoming more popular.
The hustle
The gig economy can also be likened to polyworking, as 56% of the gig economy workers juggle two or more jobs. Investopedia stated that the gig economy relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees.
Monetary reasons
One reason why the gig economy is booming is the continuous increase in prices of basic commodities. The ideal scenario is that one full-time job should be enough to secure a person, but the truth is that it just isn’t enough. With inflation and lifestyle creep, people are spending more money than before. When shopping can be done online with a tap, it encourages more spending. A month’s worth of salary might be barely enough to cover household expenses, meaning that there’s less opportunity to save as well.
Career stability
As ironic as it sounds, people joining the gig economy sometimes do so for career cushioning and stability. Given that the gig economy can be highly unstable, people are looking for ways to secure as many safety nets as possible. When you have options, it can be easier to choose which job offers more compensation and benefits.
Investment
Other gig economy workers have certain investment goals that they want to achieve. As we are aware, investment does not always guarantee a reward. When workers cannot risk their hard-earned money allocated for fixed expenses, they often use the extra earnings for investment.
Flexibility
The gig economy workers usually get work online. This means that most jobs they secure are done remotely or in a work-from-home setup. It also means that the gigs offer great flexibility in working hours. Like other freelancing jobs, other remote jobs are not confined to eight-hour shifts.
Honing other skills or hobbies
There are other people who do part-time or freelancing jobs in a field different from their main job. Usually, these people are those looking to hone other sets of skills. Creatives such as illustrators or writers do it to continue building their portfolios without giving up their day jobs. Sometimes, gig economy workers who fall in this category don’t mind how much they make on the side hustle. Rather than the pay, they might be in it to have a creative outlet outside their nine-to-five.
Work-life balance
Having a full-time job alone can be daunting and exhausting. When one factors in one or more jobs in the mix, it can be quite overwhelming. As mentioned earlier, having that extra work could be due to earning more money, flexibility, or an outlet for other talents. Whatever that is, one would need to ensure that the work quality isn’t compromised.
Effect on business
On the other side of the gig economy are the employers that may also benefit from it. Since freelancers are not permanent employees and are often project-based, they usually cost less since they are not offered the same benefits as those offered to regular employees. This means less expenses for organizations, as they potentially lessen the budget for compensation, medical benefits, and paid leave credits. The downside, however, also comes with this arrangement. Work rapport can be hard to establish, and miscommunication may occur at times.
Photo credit: The feature image is symbolic and has been done by Brooke Cagle.
Sources: Side Hustle Nation / Statista / Investopedia
