Gig Economy: The Post Covid Era

The impact of Covid-19 pandemic can be seen in almost every sectors of the economy. Job sector is one among them. It has also caused disruptive innovations in the labor market. Even before the pandemic, breakthroughs in the technology created spaces for modern job terms like freelancer, gig workers etc. and the pandemic expanded its reach to Work from home. ‘Work from home’ is the most adapted strategy during the extended lockdowns. It even helped companies to cut down its expenses on working infrastructures. Gig Economy, though existed, outstretched its scope.

Gig Economy

Gig economy basically means a labor market characterized short-term contracts or freelance work as opposed to permanent jobs and Gig workers are the independent workers who work on contract basis. These includes independent contractors, online platform workers, contract firm workers, on-call workers and temporary workers. Gig workers have an independent style of working that often does not comply with the norms of traditional organizations. Unlike the traditional workforce, they are not on the formal employment payroll of an organization. Contingent workers most often work for different organizations and projects, rather than confining themselves to
one organization. This workforce comprises of people who are constantly looking for flexibility, inclusiveness and a non-traditional
working environment.

Impact of Covid-19 pandemic on Gig economy

Covid-19 adversely affected job sector but has a positive impact on new job openings in Gig economy. During the period of COVID-19 induced lockdown, the increasing role of the gig economy was evident with significant growth of online retail business. The lockdown period also saw employers preferring ‘Work from home’ of their employees, cutting down on staff strength and engaging freelancers or outsourcing tasks to reduce overhead costs as well as to hire skilled services.

Problems faced by Gig workers

1. Self-employed gig work does not come with pensions, sick pay, holiday entitlement or parental leave.
2. Gig workers get paid per job, not monthly or hourly. This means many people are earning less than the minimum wage, with no financial security. Gig workers lack job security, employment rights, etc.
3. It’s harder for people with insecure work and income to avail loan facilities from bank.
4. Companies adopts precarious contractual arrangements when coming to gig workers.

How to be ready for Gig economy ?

1. Skilling and upskilling — You should try to keep yourself updated and keep learning continuously.
2. Responsibility and planning — You need to be responsible for your work, plan well for your future assignments.
3. Plan finances — Managing finances becomes very important since there is no safety and security.
4. Quality and consistency — In gig economy, quality and consistency of work is important. This will also help you build a portfolio for yourself.

Gig Economy: The new normal

Rising confidence on remote working and its suitability would result in an expansion of gig jobs. Both companies and employees need to start thinking of their respective roles in this ‘new normal’. Companies now started gaining confidence in remote work delivery. Virtual enablement is likely to have significant implications for the talent gig economy in the post-covid era. Sectors like education, technology and health and wellness could see immediate growth and significantly boost employment of talent gigs. For instance, the education technology sector could employ skilled housewives who can work as part-time teachers from their homes. It could potentially open more entrepreneurial opportunities within sectors having a limited exposure to the gig model.

“The gig economy is almost certain to grow in the years ahead. This will have major implications for how employers think about talent and how workers position themselves in an increasingly competitive labor market.”

Hantz Févry
Founder & CEO at Stoovo

Be ready for the future. Equip yourself with new skills. It’s ok to fail, but keep going till you see success.

By Alan K Wilson