05 Sep 2022

Contents
1. INTRODUCTION............................................................................................................................... 3

2. WHAT IS GIG ECONOMY?............................................................................................................... 3

3. HISTORY....................................................................................................................................... 4

4. GIG ECONOMY STATISTICS............................................................................................................. 5

4.1 Gig Economy Size........................................................................................................................... 5

4.2 Design and Tech Leading the Way..................................................................................................6

4.3 Global Gig Economy Grows Each Year...........................................................................................6

4.4 Gig Workers’ Financials................................................................................................................... 7

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1. INTRODUCTION
The conventional labor has already seen considerable changes as a result of the Internet's
widespread use. Even when individuals are physically separated, technologies like e-mail and
telephony have increased work flexibility and brought people closer. Additionally, it has facilitated the
growth of the gig economy.

People today have greater flexibility in their employment conditions; they are no longer dependent on
the traditional 9 to 5 job to support themselves. Instead, they might adopt a more innovative and
effective work style, accepting temporary jobs as needed or desired. The gig economy refers to this.

The purpose of this working paper is to explain what the gig economy, what opportunities does it offer
for both employers and employees, and why does it have such a significant influence on how work
will be done in the future.

Reference: (How does the gig economy shape the future of work?)

https://hrforecast.com/what-is-the-gig-economy-and-why-is-it-the-future-of-work/

2. WHAT IS GIG ECONOMY?

There are various definitions for the term "gig economy". It refers to a free market labor system where
businesses frequently use independent contractors for short-term projects and temporary roles are
popular. It widely refers to this less structured work more specifically to the set of flexible jobs
provided by various online platforms.

From operating a cab or delivery truck to document editing, technical assistance, or performing arts,
gig workers may be found in a variety of professions. Freelancers, independent contractors, project-
based employees, and temporary or part-time personnel are a few examples of gig workers.
Customers and gig workers are frequently connected via digital technologies and gig applications.

Reference: (gig economy)

https://www.techtarget.com/whatis/definition/gig-economy#:~:text=A%20gig%20economy%20is%20a,to
%20define%20a%20performance%20engagement/

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The following characteristics of the gig economy and gig employment set them apart from earlier
types of short - term, occasional labor:

 The expanded scope and size, which includes a wide range of new sectors and workers,
especially those with lower skill levels [5];
 The utilization of, reliance on, and mediation by digital technology, particularly digital
platforms;
 The 'gig' work's' greater flexibility and frequently shorter length (micro-tasks).
Reference: (The ethical debate about the gig economy: A review and critical analysis)
https://07101mfx6-1104-y-https-www-sciencedirect-com.mplbci.ekb.eg/science/article/pii/
S0160791X21000695/

3. HISTORY

Following the 2008 financial crisis, a large number of individuals were either jobless or working part-
time. As a result of people seeking for methods to replace or boost their income, the demand for
temporary work increased rapidly.

Many people eventually found themselves working many part-time or freelance jobs at once, or
combining a fixed contract employment with a flexible side gig. Gig labor got increasingly popular as
more individuals got familiar with the gig economy.

Thanks to the internet, gig workers may find employment anywhere in the globe. Finding the proper
individuals to collaborate with no longer depends on physical location, whether you're an agency
searching for an expert to assist with a large project or a freelance illustrator seeking for an author.

Furthermore, modern technology has also led to the development of digital gig economy platforms
that connect customers and employees directly. These platforms are frequently app-based. Consider
services like Uber, which links drivers and passengers, or Airbnb, which places hosts and guests in
direct contact.

Amid the global COVID-19 pandemic, gig economy employees have proven crucial for maintaining a
feeling of normality and running services that otherwise wouldn't have survived the COVID-19
outbreak. Gig workers have provided much-needed support during lockdowns all throughout the
world, providing anything from essential contactless food and medicine supplies to online instructional
services. Additionally, many people went to the gig economy to quickly replace their lost income as
they lost their employment or had their hours shortened.

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Reference: https://n26.com/en-eu/blog/gig-economy#:~:text=Fascinatingly%2C%20the%20term%20'gig
%20economy,%2C%20and%20even%20non%2Dmusicians/

4. GIG ECONOMY STATISTICS

4.1 Gig Economy Size

The global gig economy is expected to be worth $347 billion by 2021.

In the U.S., 60% of gig workers engage in freelance activity at least once a week, and 44% see it as
their primary source of income.

Nearly 90% of the whole gig economy is attributed to transportation-based services and asset-
sharing platforms.

4.2 Design and Tech Leading the Way

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With 59% of gig workers working in them globally, design and tech freelancing employment are the
most common, however the over-saturation of expertise in these industries is driving down the
compensation.

4.3 Global Gig Economy Grows Each Year

The global gig economy is expanding at a rate of 17.4% annually, more than doubling every five
years.

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4.4 Gig Workers’ Financials

Freelancers charge an average of $21 per hour globally.

Younger generations are clearly paid less than the global average, with income progressively
increasing as age groups move along.

Earnings for the ages 18 to 24 and 25 to 34 are $16 and $19 per hour, respectively, which are less
than the global average.

We can also see that 69% of all gig workers fall into one of these age categories.

As a result of age and job experience, the majority of the population earns less than the average,
which indicates that there is an unbalanced allocation of capital in the gig economy.

Furthermore, the median wage for freelancers in the US is $20/hour (according to Upwork), whereas
the median rate for the overall US workforce is $18.80/hour.

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Additionally, the hourly median wage for freelancers providing specialized services is $28.

This demonstrates that US freelancers make more money on average than the overall population,
which may possibly explain why the US has such a large gig workforce and generates such a
significant contribution to the global gig economy.

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