#commerce/y9/Employment
- The gig economy is where workers are hired to complete a particular job over a period of time. They often work on demand.
- It has previously been called the “sharing economy”.
- The gig economy typically relies on a digital platform to bring workers and jobs together. Technology has greatly facilitated this change in the workforce.
The individual §
Benefits §
- Freedom and flexibility for the worker
- Allows workers to supplement their full time income with extra work
- Allows people to earn income if they have lost their jobs, whilst they look for another
- Some people want to work casually or part time, for example to fit around study or children.
- Range of tasks hence more variety
Negatives §
- As it is ‘work on demand’, there is a huge lack of stability
- Income can often be quite unstable
- There is almost always a lack of employment benefits, such as those offered to full time / part time workers.
- Most gig workers require constantly looking for work
- There can be competition from other workers, due to the often large skill pool.
The business §
Benefits §
- No benefits to pay to the individual
- No costs to train the workers
- Possible to employ people with various skills
Negatives §
- Lack of loyalty to the business
- Lack of communication, as a lot of gig workers are remote
- Constant search for an employee to complete a job
Effects on the Economy §
Positive §
- Increases trust in society. People are more likely to buy from each other rather than a brand.
- Possibility that it could lead to a win-win situation for both businesses and employees.
Negative §
- Uncertainty whether people will be earning enough to save for retirement, healthcare, etc.
- Concerns about future tax base; military, roads, public transport, etc.