{"id":8708,"date":"2021-11-19T01:32:58","date_gmt":"2021-11-19T09:32:58","guid":{"rendered":"https:\/\/maccelerator.la\/?p=8708"},"modified":"2021-11-22T01:29:29","modified_gmt":"2021-11-22T09:29:29","slug":"everyone-wants-to-be-a-freelancer-the-rise-of-the-gig-economy","status":"publish","type":"post","link":"https:\/\/maccelerator.la\/en\/blog\/freelance\/everyone-wants-to-be-a-freelancer-the-rise-of-the-gig-economy\/","title":{"rendered":"Everyone wants to be a Freelancer. The rise of the Gig Economy."},"content":{"rendered":"\n

The pandemic has bolstered an already changing trend in the freelancing world. As people were laid off from jobs, stopped going into the office due to COVID, or just found themselves with more free time on their hands, they picked up and transitioned to some freelance work. <\/p>\n\n\n\n

When people were sent home due to the pandemic, they experienced working from home for the first time and found that it suited their lifestyles way better than going into an office 9-5. <\/p>\n\n\n\n

As offices start to reopen around the country, we are seeing a record number of open jobs. <\/p>\n\n\n\n

Why is that? Some assume that workers have realized their worth and want to be more selective in their job choice, while others left their previous jobs and never want to step foot in an office again. Whatever the reason, there is a record number of people working from home right now, and a lot of people want to keep it that way. <\/p>\n\n\n\n

As the number of freelancers is growing, so are the number of websites and platforms for them to work. To name just a few, Fiverr and Upwork are platforms for writers to find work, 99designs is there for graphic designers, and Flexjobs is a great platform to find any kind of flexible, remote work on a full-time or part-time basis.<\/p>\n\n\n\n

<\/p>\n\n\n\n

What is the Gig Economy? <\/strong><\/h2>\n\n\n\n

The gig economy is a huge part of our economy. It is essentially a free market system where companies and organizations can contract independent workers to work for them full time for a short-term, or for a specific project. These individuals are freelancers and as a freelancer, they pick and choose what projects they will take on, and in turn, they design their own work. <\/p>\n\n\n\n

This free-market system contributes to many different industries including writing, social media, photography, digital marketing<\/a>, tech development, and so much more. You can find a gig worker for basically any task you have as an individual or as an organization. <\/p>\n\n\n\n

<\/p>\n\n\n\n

Why is the Gig Economy Growing? <\/strong><\/h2>\n\n\n\n

The gig economy has been gaining traction over the past few years. As the workplace has become more and more reliant on tech, companies have needed to turn to web developers, content writers, graphic designers, and people in other specialties to set their business<\/a> aside from others. <\/p>\n\n\n\n

With an already sturdy foundation for freelance work in place, the pandemic helped expedite this immense growth<\/a> in the industry. As people were sent home from their in-office jobs, left their job voluntarily, or got fired, people got a taste for what it was like to work from home. <\/p>\n\n\n\n

People realized that being in the office from 9-5 was outdated and many do not ever want to go back. <\/p>\n\n\n\n

Even before COVID, independent workers were an essential and growing part of the United States workforce. According to one pre-pandemic estimate<\/a>, more than a third of workers in the United States were involved in the gig economy. In 2020, their wages and participation in the gig economy grew 33%<\/strong><\/p>\n\n\n\n

The growth and shift to the gig economy did not just come from workers. Plenty of individuals found themselves either forced to turn to freelancing or turning to it by choice because they liked the independent work model better. This dependence on the gig economy also began to come from businesses. <\/p>\n\n\n\n

\"Why
Photo by Cytton. <\/figcaption><\/figure>\n\n\n\n

Companies found themselves in a hard place. They either had to let go a lot of employees<\/a> because they couldn\u2019t afford it due to a decrease in demand, or their industry had dried up in the midst of the ongoing pandemic. Whatever the reason was, they soon found themselves understaffed when businesses began to open up again. <\/p>\n\n\n\n

To combat this struggle, many companies turned to freelancers rather than bringing on a new, full-time employee. For many businesses, bringing someone on during the pandemic was a risk<\/a>. The future was uncertain and still is. <\/p>\n\n\n\n

The thought of bringing someone on full time came with the possibility that you were going to have to lay them off again if the pandemic took a turn for the worst, and many companies were not willing to take that risk. It is extremely costly to bring on a full-time employee and if it does not work out, then you wasted a lot of money on training someone who ultimately doesn\u2019t need it. <\/p>\n\n\n\n

With freelancers, there is much less at stake<\/strong>. If the pandemic takes a turn for the worst, a company can simply choose to not give the freelancer any more projects. The freelancer knows the terms of freelancing work. It is never a guarantee that you will continue to get work. This type of model makes it difficult for a freelancer in uncertain times, but very simple and convenient for companies and employers.  <\/p>\n\n\n\n

<\/p>\n\n\n\n

Will the Gig Economy Continue to Grow?<\/strong><\/h2>\n\n\n\n

Even if the pandemic completely ended tomorrow, the gig economy would probably continue to grow, or at least hold its size. It is expected that the gig economy is going to continue to grow as more and more freelancers find themselves preferring that method of work and companies find that it is more efficient and effective to hire freelancers than full-time employees in certain industries. <\/p>\n\n\n\n

It is estimated<\/a> that the gig economy will reach a gross volume of $455.2 billion by 2023. <\/strong><\/p>\n\n\n\n

This means there will be a very impressive increase in the gig economy by then. It is further estimated that by 2027, a staggering 60% of the United States workforce will be independent. Right now there are already 9.2 million Americans working in the gig industry and this number is only going to go up. <\/p>\n\n\n\n

The growth of the gig economy and the increase in the number of freelance workers is happening all around the world. <\/p>\n\n\n\n

Not only in the United States. In Japan, a staggering 513% increase<\/a> in new gig workers has been reported since before the pandemic. <\/strong><\/p>\n\n\n\n

Another great perk to the gig economy is the ability to complete work internationally. With the gig economy, finding freelancers from all around the world is extremely easy. <\/p>\n\n\n\n

When you look on freelancing platforms, you can specify your search to include only freelancers from a certain area. This can be a huge benefit to companies that conduct business internationally. Having a freelancer in the country whose audience you are trying to reach could be crucial and extremely effective. <\/p>\n\n\n\n

<\/p>\n\n\n\n

Policy Issues in the Gig Economy <\/strong><\/h2>\n\n\n\n

With such a quickly growing industry, it is to be expected that there would be some policy issues that need to be addressed. When individuals act as their own managers and take on work themselves, it can create an unequal system. Freelance work ebbs and flows. <\/p>\n\n\n\n

There are some times where freelancers do not have a lot of work and other times where they are completely swamped with work. When the ebb and flow nature of freelance work, sometimes people do not feel comfortable turning down projects and can quickly become overwhelmed. This creates potential issues with meeting deadlines, communicating with clients<\/a> effectively, and completing work to the satisfaction of the clients. <\/p>\n\n\n\n

When freelancers work with the same clients consistently, they form a working relationship. The difference between this relationship and one that an employer has with a traditional employee is that standard policies and procedures are not in place to protect the worker. <\/p>\n\n\n\n

\"Policy
Photo by Shridar Gupta.<\/figcaption><\/figure>\n\n\n\n

In a normal office setting, you may have a strong HR department that makes sure you do not need to go over your assigned hours, or a policy on meeting deadlines. In the freelance world, the freelancer is not protected like a standard employee is. This can create a sort of worker exploitation where a client is asking too much of a freelancer and setting unrealistic expectations. <\/p>\n\n\n\n

The downfall for freelancers in the gig economy is that clients have very little incentive to be accommodating. If the freelancer thinks that the client is asking for too much and won\u2019t do it, instead of compromising the client could just choose another individual to complete the project instead. <\/p>\n\n\n\n

Along these lines, another issue for gig workers is the lack of benefits. Even if you find yourself finding enough work to copper yourself full time as a freelancer, it is important to realize that you are not only giving up a structured hourly or salaried structure, but also benefits and perks that come with working at a full-time, traditional job. Freelancers do not have their own healthcare through the gig economy so that can be a huge additional cost out of pocket. <\/p>\n\n\n\n

<\/p>\n\n\n\n

Legal Issues with the Gig Economy <\/strong><\/h2>\n\n\n\n

One thing that has been a topic of conversation lately in relation to the gig economy is the legal classification<\/a> of workers. Unlike traditional workers, gig workers do not have the ability to form unions and do not qualify for protection under labor laws in most places. <\/p>\n\n\n\n

Another issue with the legal classification of workers is the difficulty of defining them as independent contractors or employees. In some cases it is simple. A client proposed a project and a freelancer will pick it up and complete it. This worker would be an independent contractor. A more difficult distinction comes when a freelancer is completing tasks for the same client on a consistent basis. <\/p>\n\n\n\n

A good example of this is Uber or Lyft drivers. Technically drivers are classified as independent contractors but that means that they do not get benefits. A lot of drivers for Uber and Lyft work full-time hours so classifying them as independent contractors look like a loophole for the company. <\/p>\n\n\n\n

These issues of the legal classification of workers recently came to light. In California, voters saw Proposition 22 make it onto their ballots<\/a>. Proposition 22 set the foundation for this gray area of legal classification by allowing the transportation companies Lyft, Uber, and Doordash<\/a> to continue to classify their drivers as independent contractors. Proposition 22 passed with a surprising 58% approval from voters. <\/p>\n\n\n\n

This was a victory for companies like Lyft and Uber because it allows them to continue to treat their employees like gig workers. Since gig workers do not qualify for existing labor laws, Uber and Lyft and similar companies do not have to give their drivers benefits and perks that you would typically get as a traditional employee. <\/p>\n\n\n\n

The acceptance of Proposition 22 goes against a prior California Supreme Court ruling that passed in 2018. The 2018 ruling on the case known as Dynamex stated that Uber and Lyft drivers appeared to be employees, not independent contractors. Despite the ruling, the companies did not move to reclassify their workers and Proposition 22 was a response to the 2018 ruling. <\/p>\n\n\n\n

The passage of Proposition 22 is a setback for many of those who see tech giants like Uber and Lyft cutting corners and breaking the law. Though Proposition 22 did pass, there is a growing community<\/a> of lawmakers and officials who want to continue to take on the tech giants. Many see this as a bump in the road, not the final destination. <\/p>\n\n\n\n

<\/p>\n\n\n\n

Conclusion<\/strong><\/h2>\n\n\n\n

It is clear that the gig economy is growing and we are going to be seeing more people go independent as freelancers and more businesses hiring<\/a> freelancers instead of traditional full-time employees. The pandemic has clearly promoted the gig economy to be a more popular method of work and as offices begin to require their workers to come back in person, we might see a drastic shift to the gig economy. <\/p>\n\n\n\n

\"What
Photo by Kaleidiko.<\/figcaption><\/figure>\n\n\n\n

It is clear that people have a new perception of what work should be and they are not going to compromise. Right now, it is a worker\u2019s world. Almost any industry is seeing a labor shortage and to fill those positions, companies may need to change their practices or make a shift to hiring more freelancers. <\/p>\n\n\n\n

Until companies catch up and meet the needs of workers, we may continue to see this labor shortage as people stand their ground on what they want. <\/p>\n\n\n\n

Freelancers have never had as many platforms and programs as they do now. It is extremely easy to become a freelancer today, especially if you have solid, transferable skills in the industry you want to freelance for. Hopefully, as the gig economy continues to grow the policy and legal issues regarding it will evolve as well. <\/p>\n\n\n\n

When a movement continues to grow and more and more of the workforce can be classified as gig workers, these questions will be impossible to ignore. <\/p>\n","protected":false},"excerpt":{"rendered":"

The pandemic has bolstered an already changing trend in the freelancing world. As people were laid off from jobs, stopped going into the office due to COVID, or just found themselves with more free time on their hands, they picked up and transitioned to some freelance work.\u00a0<\/p>\n","protected":false},"author":5,"featured_media":8709,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1247],"tags":[1032,1248,1381,1382,1386,1027],"class_list":["post-8708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-freelance","tag-covid19","tag-freelance","tag-freelancers","tag-freelancing","tag-gigeconomy","tag-startups"],"_links":{"self":[{"href":"https:\/\/maccelerator.la\/en\/wp-json\/wp\/v2\/posts\/8708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maccelerator.la\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maccelerator.la\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maccelerator.la\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/maccelerator.la\/en\/wp-json\/wp\/v2\/comments?post=8708"}],"version-history":[{"count":0,"href":"https:\/\/maccelerator.la\/en\/wp-json\/wp\/v2\/posts\/8708\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maccelerator.la\/en\/wp-json\/wp\/v2\/media\/8709"}],"wp:attachment":[{"href":"https:\/\/maccelerator.la\/en\/wp-json\/wp\/v2\/media?parent=8708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maccelerator.la\/en\/wp-json\/wp\/v2\/categories?post=8708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maccelerator.la\/en\/wp-json\/wp\/v2\/tags?post=8708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}