The gig economy is the rising labor market that hires temporary, contracted workers instead of traditional employees.

Companies are outsourcing tasks to already-trained, nonbenefited workers, and workers have a chance to work for multiple companies in temporary positions and quick gigs or to fulfill ongoing work.

There are a lot of mixed feelings about the gig economy.

One thing is clear, however: It’s continuing to grow; the gig economy is definitely here to stay and in a big way.

If you’re wondering what this means for you, we’ll take a look at what’s changing in the gig economy and what it means for both businesses and freelancers moving forward.

The gig economy has always been around, to some extent; there have always been temp agencies, or babysitters who worked off the record, or accountants who had their own firms (which technically we’re counting here).

It became even more popular when we got access to the internet, as people were able to start promoting their skill sets and connecting with audiences.

In some cases, this allowed people to turn side hustles into a full freelance business.

The defining moment, however, that caused a sharp upturn in the gig economy came around 2008 when the Great Recession hit.

As housing markets collapsed and unemployment rates started to climb a little too quickly, things changed within American society.

People started taking whatever jobs they could get, even if they were temporary.

The security of being able to balance multiple clients while the employers didn’t have to worry about actually employing anyone became more appealing for everyone involved.

The gig economy is becoming more diverse, with people of all ages and experience entering it.

Recent university students getting started in the workforce use the opportunities to gain job experience and pick up a side hustle.

Retirees are even getting in on it, taking on gigs to earn more cash.

The gig economy also offers millennial and Gen Z workers benefits and opportunities they’re actively looking for.

They can work while they travel, set their own schedule and even choose to work for companies they truly believe in because they have more flexibility.

What The Gig Economy Means For Businesses

What The Gig Economy Means For Businesses

The gig economy is great news for businesses.

They’re able to hire the freelancers from all over the world who are able to best meet their needs without geography being an issue.

And they can do so without worrying about training costs; in almost all cases, these workers are coming with specialized skills and ready to go.

Freelance  are also more cost-effective for businesses, even if the workers have high hourly freelance rates.

Businesses don’t have to pay for training, benefits or any taxes on contracted workers, and they don’t have to worry about finding enough hours per month of work as they would for an employee.