Will gig economy ever replace traditional economy?
Hi Steemians! It has been quite some time since my last post. Finally got some time to post an article today and it is something different from my usual topics. Today was another usual day at work. Busy, hectic and tiring. When I stepped into office, I had this odd feeling that I have never been home the day before. I felt jaded. Should I look for a new job? Should I consider freelancing? Then I began to wonder, will I be able to survive by freelancing or doing "gig" work? What will be the tradeoffs if I make the switch?
For those who do not know what is the meaning of "gig", a gig is a temporary job or work. It ranges from being an Uber driver to being freelance graphics designer. In this Forbes article, it was suggested that by year 2020, 50% of the U.S workforce will be freelancers. In where I am from, Singapore, the number is likely going to be much lower. This is because Singaporeans typically value job stability. We are more risk averse and will try to pick the safer route in life.
Some statistics
- 53 million Americans, or 34 percent of the U.S. workforce, are working as freelancers.
- 31% of freelancers said they can find a gig online in less than 24 hours.
- In America alone, the freelance/gig industry is estimated to generate $1.4 trillion annually to the US economy
Benefits of being part of the gig economy
You are your boss - I think the best thing about freelancing or doing gig work is that you are your own boss.
Flexibility - You are in charge of your own schedule and you can make your schedule suits you rather than you having to suit the schedule given by your boss.
Extra income - If you have a usual job, being in the gig economy is going to bring you more income.
Disadvantages of being part of the gig economy
No stable income - Your income is determined by how many tasks/jobs you complete.
No corporate benefits - You don't get the benefits of taking paid time-offs and other perks that you might enjoy if you are employed by a company.
My take
I think the gig economy is overall very beneficial to the world. In a way, it made countries more resilient to economical recession. It provides income for those who get retrenched so that things do not get into a downward spiral that easily. In this article, it talks about how gig economy helps cushioned a weak job market in Singapore. On top of that, gig economy offered more choices to consumers. It in turn forces companies to up their game in order not to lose out to freelance contractors.
All these were made possible through the advancement of technology; specifically the internet. And through the use of blockchain, it might make gig economy even more appealing as middlemen are gradually getting removed. Freelancers will be getting more for the same work that they are producing. And consumers can get more work done with less cost.
Will gig economy ever replace traditional economy? I doubt so. But I think it is a strong complement to traditional economy and we will reach a stage where one cannot do without another.
Gig economy is something which appeals to me. However, I believe I will not be able to get the same level of income if I were to switch to freelancing full time. I think I will continue with a usual job but get some side incomes by doing some gig work.
Recently, I saw that @surpassinggoogle had started #steemgigs, I have not read in depth into it but I see that it is starting to pick up some steam (pun intended). I wish it every success and I do hope to participate in it somehow in the near future.
Thanks for reading! Let me know your thoughts. Are you a full time freelancer? Share your stories and comment below.
Hi brother, yes you did not post for a long time. :P
I am a freelancer as well but I do not think that the gig economy will fully replace the usual/traditional economy - it will definitely exist both as it is doing like now but replacement would not be good anyway, I guess.
And yeah, you have to risk it for the biscuit but always "stay realistic" because your decision should not be stupid - more like wise. :D
Do you have certain plans concerning "gigging" (if you can say so haha).
All in all, I share your opinion in the article.
Hey bro, yes it has been a while. Haha.. I am thinking of starting some freelance programming or bug bounty hunting. What are you freelancing on?
Haha :D
Im Gandalf The White, Id say Im quite a free lancer, kinda. ;D
I think you will be surprised, a lot of people make the switch to freelancing/sole trader (self-employed) and find out they make more money.
This is because there is no ceiling on their income and they might be more motivated to work for themselves, a lot of people dislike working for under someone and resent being given orders.
There are arguments for both sides and I understand the worry about the potential loss of security of earnings.
Do not be afraid of failure, and take on new challenges with aplomb.
Indeed. I also know friends who are full time freelancers/traders. One important factor for them to be successful is self-discipline. If there's a lack of self-discipline, it is going to be difficult not to let laziness set in.
I believe the gig economy can generate some passive income for you if you are really devoted to it or even manage to surpass your full-time job. Eventually, you can quit your said job. Upvoted!
I do hope so. Haha..
Oh wow, I learned alot from your post! You are very knowlegable, thank you for sharing😊
Thanks! Happy to share and learn from each other.
@culgin You content always a great read!
Thanks my friend!
i actually just heard of that same exact statistic yesterday that by 2020 many people in the world would be considered freelancers. I think my teacher must have quoted wrongly though as she said 80%
Haha.. maybe that's a figure from another source. There are many research and projections made. Hope you are doing well in Finland. :)
You have obviously given the topic some thought. I guess there are people who like the idea of doing gigs, while some might find the idea of not having a steady income frightening - especially if you have a family who depends on your check at the end of the month.
However, as you suggested, gigs are a good way as a supplement to an income.
Yup, gigs are a good supplement to existing income. I think in Singapore, it is quite difficult to grow wealth just by doing gigs.
Yes! I agree - unless it is a very specialized trade. But I believe that people who chose gigs over full-time jobs are also those who prefer freedom, and doing what they love to being tied down for the sake of money.
Sounds like your opinion is, Why not add it as a side hustle, as long as it's not affecting your dayjob?
Yup. That's my take. It's too much of a trade-off for me to switch immediately. I do not think I'm skilled enough at my gigs to be able to earn as much as I will like to.
Hi, i just read it! That is very helpful, thanks for the info. Upvoted!
Thanks for dropping by!
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