Shopper Blog

The Rise of the Gig Economy

Gig jobs have been around for a long time and may not be a new concept; however, the rise of their popularity, especially among the younger generation, has had an enormous effect on the economy and how people live their daily lives. Traditional employment has lost its luster, and the 9-to-5 job is no longer the dream job for many workers. People are seeking flexibility when it comes to working, and a side gig or a freelance job offers just that. Let’s take a look at just how much the gig economy has risen over the years and why it may be the backbone of our economic future. You can trace the rise of the gig economy to the global financial crisis in 2007 & 2008. This economic downfall greatly affected many traditional businesses, which resulted in either their decline or completely altering the nature of their business. Consequently, many people in the workforce turned towards freelance or contract work to survive the crisis. Due to the COVID-19 pandemic, we have been seeing this repeat itself over the last couple of years as the gig economy continues to grow. In 2020, 23 million new participants joined the pool of gig workers in the US. (daVinci Payments, 2021) Even before the pandemic, the gig economy was growing at a significant rate. In 2018, the global gig economy was at around $204 billion. By next year in 2023, it is estimated that will raise to $455 billion in 2023. (MasterCard, 2020) Simply put, in terms of economic output, the gig economy is expected to double in just 5 years. Companies around the world are now realizing that the future of work could revolve more around the gig economy, and many businesses are completely changing their business model to accustom that. In conclusion, the continued growth of the gig economy will significantly benefit workers today by offering new work opportunities and multiple sources of income. Not only can you choose your own hours and accept interesting work, but you can also participate without quitting your job. There are hundreds of different side gigs anyone can do, so no matter what your experience is, it’s time to partake in the rapidly growing industry.