The gig economy is a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. In this economy, workers, often referred to as gig workers, take on various temporary, flexible jobs such as driving for ride-sharing services, delivering food, freelance writing, or providing tech support. The gig economy offers workers the freedom to choose when and where they work, often allowing for a better work-life balance.
For businesses, it provides a cost-effective way to access talent and scale the workforce according to demand without the long-term financial commitments associated with full-time employees. However, the gig economy also presents challenges, such as lack of job security, benefits, and protections traditionally afforded to full-time employees. Managing gig workers requires clear agreements on project scope, deadlines, and compensation, as well as ensuring compliance with relevant labor laws and regulations.
You may also be interested in learning about these terms:
Gig Economy
Gig Worker
Freelancer
