The gig economy is an economic system where temporary, flexible jobs are common, and companies hire independent contractors, freelancers, or micro- entrepreneurs instead of full-time employees. Workers in the gig economy are paid per task or project, often through digital platforms or apps that connect them directly with customers for short-term engagements. This model is characterized by jobs that are temporary, freelance, or part-time rather than permanent positions
. Key features of the gig economy include:
- Flexibility and independence for workers in choosing when and how much to work.
- Lack of traditional employee benefits such as health insurance, paid leave, and job security.
- Cost savings for companies, which avoid expenses related to full-time employment like office space and benefits.
- A wide range of jobs, including ride-hailing drivers, food delivery, freelance writing, tutoring, software development, and more
The term "gig" originates from the music industry, where it referred to short- term performance engagements
. The gig economy has grown rapidly, with millions of workers involved globally. For example, it represents about five million jobs in the UK and over a third of the US workforce, contributing significantly to economic activity. It is driven by digital platforms that facilitate on-demand work and services, offering convenience to consumers and flexibility to workers, though it also raises concerns about worker protections and fair labor practices
. In summary, the gig economy is a labor market model based on short-term, flexible work arrangements enabled by technology, emphasizing freelance and contract work rather than traditional employment
