The Impact of the Gig Economy on Traditional Employment

The gig economy is a free market system characterized by temporary jobs, independent workers, and short-term contracts. The gig economy’s growth and continued impact on the traditional workforce have been open to debate in recent years. Its popularity has made people wonder how it’s affecting mainstream employment.

According to TeamStage, the gig economy is expanding three times faster than the entire US workforce. Currently, most of the working-age population still opt for the traditional workplace with fixed working hours and a pre-agreed salary. However, the projected expansion of the gig economy means that mainstream employment is set to change in the future. Statistics show that approximately 50% of the US workforce will likely be gig workers by 2027. That means that part-time jobs and remote work will be much more part of mainstream employment by then.

The gig economy has an endless list of benefits for workers and could change the entire outlook for employment in the United States. The advantages of self-employment, such as flexibility, more money-making opportunities, and better work-life balance, are what the average worker seeks. The scarcity of such benefits in a traditional office setting is one of the main reasons behind the gig economy’s growth.

The gig economy reduces the risk of complete income loss for workers as the free market allows them to have multiple employers. It also changes how workers react to some employment policies, such as maternity leave, for example. The gig economy allows women to take a break from office jobs and seek temporary and more convenient jobs elsewhere—an unimaginable concept a few decades ago.

The gig economy affects employees as well. The free market gives companies the ability to hire experts to perform tasks and services without the need for permanent job positions. That allows them to pick the best people for the job. It also saves money that would otherwise be spent on employee benefits and office space.

Although still in its infancy, it’s clear the gig economy has had a huge impact on employment practices in the US. Check out the infographic below for more information about the gig economy in America.

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