The Gig Economy: How Contract Work Changes The Playing Field

According to Velocity Global, “The gig economy is large — and growing every day. The number of global gig workers is expected to rise by more than 30 million people in the next year. More workers are starting to see the benefits and flexibility of contracting and independent work.” Gig work accounts for 36% of the total American Workforce. (Shutterstock)
In the modern era, most people have heard talk about the gig economy. The changing landscape of work has led to many jobs that would have previously been considered ‘nontraditional’. What qualifies as being part of the gig economy is actually pretty wide. Essentially, if you work as a freelancer or contracted worker, you are working a gig job. This includes everything from ride-share and food delivery jobs like Uber and DoorDash, tutoring, renting or flipping properties, and doing consulting work. What makes it a gig job, in essence, is something that can be ended at any time, and has no formal work setting.
As of 2022, 36% of the US population works some kind of gig job. This is around fifty-nine (59) million people who are making their income through freelance work. And studies show that this will only increase, with many believing that within the next five (5) years that number will increase to eighty-five (85) million workers. This matches the rate of growth that has already been seen this year alone, as this summer saw a rush of people joining the contractor market.
Here Are Some Quick Facts About Gig Work:
- Over half of people working gig jobs do it to pad their current income
- Almost half of all gig workers do it so they have a freedom to set their own hours
- Most work an average of eleven (11) to thirty (30) hours of work a week, on top of any other jobs they may have
- Roughly seventy (70) percent say they work freelance by choice
- Around thirty (30) percent started during or after getting their education
- Twenty (20) percent started after being laid off from a previous job
- Thirty-six (36) percent do it as their full-time job
- Around forty (40) percent have access to medical insurance
To get a personal perspective, The Daily Record interviewed two individuals about their experiences working gig jobs.
Josie worked as the director of her own photography company, in which she and her business partner would travel and take photos for youth sports organizations across the country. This was her full-time job, and she would often work over forty (40) hours every weekend taking photos and have anywhere from ten (10) to twenty (20) hours of clerical work for her business throughout the week. She worked nearly every weekend; while she was able to set her hours to a degree, most tournaments being weekend affairs.
Josie says she got into the gig industry mostly out of frustration, as her previous work with a more traditional setting had been demanding and toxic. With her contract job, she says it was both the most money she ever made, and the most she ever spent, as she had to pay for supplies and overhead and travel costs. There were also costs associated with the risk of driving cross-country, as the van she used for the business was broken into multiple times while traveling.
She considers her time working a gig job as mostly positive, as she felt it was a major learning opportunity.
“I essentially taught myself how to be a photographer, graphic designer, saleswoman, businesswoman, networker, negotiator, all in a matter of months.”
She also feels that it gave her a great deal of freedom and independence because it allowed her to travel in a way that a traditional job wouldn’t have. But she did miss having coworkers; she didn’t receive the kind of camaraderie she had enjoyed in traditional employment. Josie has since left the gig economy and is now working as an editor full-time and works with a team of people to get that multi-level feedback that she was craving.
Briana has been a freelancer for a little over eight (8) years. She does marketing and promotions for a variety of different organizations. Her hours are varied, depending on the gig she is working, and can often have anywhere from two (2) to ten (10) companies she is working with at the same time. Briana credits part of her drive to work in freelancing from watching her entrepreneur parents and seeing what work could be like outside a traditional desk job. While she has experienced what a 9-5 work schedule is like, she commented that while her pay was higher, there was less freedom, and one of the things she enjoys about freelancing is being able to show her most authentic self with her work and connect to others.
When it comes to the positives of working a gig job, Briana enjoys that she is able to take the time to care for herself and her family without having to juggle her work/life balance.
“I am able to prioritize life events when they happen, and I can truly be there for those who need me, as well as being able to be there for myself when I need to.”
However, she does acknowledge that there is a lack of stability that comes with contract work, and that there is a required flexibility to the work. She commented that “it’s not for everyone”, and that you have to put yourself out there more than in a lot of industries, working towards your next contract and making work relationships that might lead to more jobs in the future.
Briana truly enjoys working as a freelancer, and sees it continuing in the future, for there is always a demand for gig work in her industry, and finds that many employers prefer the flexibility that comes with hiring temp workers then keeping someone permanently on staff regardless of workflow.
“There can be a bit more planning involved, but personally,” Briana said, “I feel that the negatives are a minor inconvenience compared to how stifled I felt working for someone else.”
There are many positives that can be found when it comes to working contract jobs; you have the flexibility to decide when/with whom you will do work, where you will go, and how many people you want to work with. But that lack of stability that comes with not having a consistent 9-5 job can be frightening for some people, and that uncertainty can be the breaking point for many when it comes to gig work. Many others also find they have to do more work to make the amount of money they need to survive, with some taking on multiple jobs at the same time. By and large, this style of work has changed the playing field, and it is unlikely it will ever disappear.
If you would like to learn more about the statistics of gig work and the gig economy, you can go to velocityglobal.com/blog/gig-economy-statistics/.
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