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Future of Economy - Gig Economy . The History Behind.


Welcome to Technoid. Once again, thank you for all your support.
In this post, we are about to see the gig economy which is a current trending economy and we are also about to see History and Future of the gig economy and please do read the entire blog to know completely about Gif Economy.


So let us consider the traditional employment which is getting a permanent job in a company and working for that company even if you like the job or not. Companies also provide some privileges to their employees such as Medical insurance, ESI, PF, etc...This is what is the traditional economy.

As we are in this pandemic crisis, many companies are struggling to give salary to their employees. This is because they are the permanent employees to their company. So even if the employee takes leave, the company must pay to the employee. But the Gig economy is entirely different.

So what is the gig economy? Let us just separate the words and we can find the exact meaning.
"If all the economists were laid end to end, they would not reach a conclusion."
What is 'Gig'?
______
The gig is a word coined by Jazz club musicians in the early 1990s. The gig is slang for a live musical performance, recording session, or other (usually paid) engagement of a musician or ensemble. Basically, it is used to describe a musical concert.
So what is the Gig economy?
_____
A gig economy is a free market system in which temporary positions are common and organizations hire independent workers for short-term commitments. Whereby individuals have greater work flexibility but without the benefits of the employed, such as Healthcare, Pensions, and Paid Holidays. It has been around for more than a century. Eg of gig economy Uber, Swiggy, Zomato, Freelancing, and many more.
"There can be economy only where there is efficiency."
History of Gig economy:
_____
  • As there was a great economic depression in the 1930s, there raised an idea of less secure and less location-based work. Many farmers sold their lands due to drought and falling prices. So that they were unable to find steady work. So they forced to work as migrants moving from farm to farm.
  • In the 1940s, the first temp agency was opened, providing businesses with typists and other clerically trained staff on a temporary basis.
  • So in 1990, 10% of the US workforce was employed as contractors,on-call workers as the demand and voice for more flexible work patterns and non-permanent staff raised.


Rise of Gig Economy:
_____
So when this digital era begins in the late 1990s, the gig economy also slowly started.

In that time 1996-Craigslist,1999-Upwork and many other platforms raised which is used to remote job options which provide gig workers to find a place to find work.

In 2005, Amazon introduced Amazon Mechanical Turk which is a crowdsourcing marketplace for simple repetitive tasks.

In 2008, Airbnb was launched, enabling anyone with a spare room to generate an additional income by letting it out.

By 2018, Airbnb was worth a staggering $38 billion.

The gig economy was turned up another notch in 2010, when Uber arrived, recruiting contract drivers. By 2015, more than 1 billion rides had been completed with Uber drivers.
Advantages of Gig Economy:
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Gig economy allows task ownership, convenience, and flexibility. Based on the taste and preferences, you can determine the number and type of projects you work on, the quantum of your earnings, and thus, the work-life balance. For example, you may want to take up five projects in one month to maximize earnings but only three in another month. 
Similarly, you have the freedom to not offer your services for a task if you don’t believe in the underlying cause of the task– flexibility you don’t have in a traditional job. An increase in the adoption of smartphones and the rate of digitization is enabling gig freelancers to offer various professional services through tech-based platforms. Gig workers can sign up for tasks in which they are more skilled.
"There can be economy only where there is efficiency."
Future Of Gig Economy:

By 2027, 60% of independent professionals will make up 60% of the workforce.
The infographic survey reveals 94% of employees would consider this non-traditional employment.
Service seekers are moving towards a gig economy for reasons such as cost-cutting and skilled workforce. Corporates find it cheaper to employ freelancers to perform specific tasks by avoiding the traditional administrative and compliance costs associated with regular employees. With an increase in the on-demand services for specific tasks as per business needs, it is now flexible and affordable to hire people skilled in such services.
The US is currently a leader in the gig economy. On the other hand, developing countries such as India represent a great potential as an adopter of the gig economy due to the expanding supply of freelancers and lower-skilled labor.
India can study the trends in the US gig economy to promote the potential of gig tasks in India. For example, for Uber and Airbnb in the US, there are Ola and OYO in India respectively.
Interesting Facts about Gig Economy:
_____
  • More than 1/3 of the US workforce opts for the gig economy.
  • By 2021, gig workers will outnumber traditional employment.
  • By 2025, online talent platforms like could add $2.7 trillion to global GDP which is nearly 2% growth.
  • Increase worldwide employment by 72 million.
  • Riders will likely pay higher fares $0.70 - $1.80 more per ride.
  • Americans who work gigs on top of their primary job earn an average of $1,122 per month.
I hope you liked this information about the gig economy.
Do keep reading all our blogs for more technical and social information.
Feel free to reach out to us for any queries and suggestions. We are always happy to reach you out.

Thanks for all your precious time people.

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