A gig economy is when a company entity or group of entities choose to hire freelancers, independent contractors, and temporary employees instead of full-time employees. It is a stark contrast to the traditional way of hiring full-time employees full-time.
Understanding the Gig Economy
In a gig economy members have the flexibility to choose the jobs and hours that they work which provided flexibility and also translates to a cheaper and quicker service for consumers. However, there is a trade off. It often means that the members is a part time or seasonal worker and does not qualify for benefits. Sometimes, the company may not even offer benefits not matter what the number of worked hours are. This can lead to many Gig Economy workers stranded without insurance coverage.
Large cities often are where Gig Economy workers thrive the most as it has a higher number of people in a concentrated area, which translates to a larger demand for the services.
Where did the Gig Economy come from?
Due to the internet, a large scale communication network, as well as technology becoming more and more integrated into our daily lives, the Gig Economy has sprouted. Currently, it is estimated that about one third of the American population is already working in the Gig Economy in some capacity, and it is expected to rise.
More people than ever are working remotely or from home, and a higher demand for better work-life balance has become a valuable asset in today’s workplace. This has lead more and more people away from the traditional working circumstances.
Is the Gig Economy right for me?
Working in the Gig Economy certainly has its benefits, but it also has its risks. The main one typically seen is lack of insurance benefits which is why many of the people working in the Gig Economy are younger healthy adults.
We love Gig Economy workers! That is why we strive to create insurance products built for every scenario (yes, including this one). Click here to see what insurance you qualify for!