The gig economy is made up of three main components: the independent workers paid by the gig (i.e., a task or a project) as opposed to those workers who receive a salary or hourly wage; the consumers who need a specific service, for example, a ride to their next destination, or a particular item delivered; and the companies that connect the worker to the consumer in a direct manner, including app-based technology platforms. Companies such as Uber, Airbnb, Lyft, Etsy or TaskRabbit act as the medium through which the worker is connected to – and ultimately paid by – the consumer. These companies make it easier for workers to find a quick, temporary job (i.e., a gig), which can include any kind of work, from a musical performance to fixing a leaky faucet. One of the main differences between a gig and traditional work arrangements, however, is that a gig is a temporary work engagement, and the worker is paid only for that specific job.
The growth of the gig economy represents a shift in the way Americans view work. Instead of a more traditional system where a worker works full-time for only one employer, some workers choose to enter the gig economy for the flexibility, freedom and personal fulfillment that it provides them.4 Dr. Brown explained to workshop participants that his students expressed interest in more control and autonomy over their career paths. His students are also serial multitaskers: many of them want the stability of one anchor employer, alongside the flexibility of simultaneous, smaller jobs. They want to spread their talent among different jobs.
Much of America’s current workforce policies and social safety net were developed earlier in the 20th century with a different work culture in mind. Employees were expected, and far more likely, to work at one company until retirement and receive benefits from that company. Now, however, counties need to be prepared to adapt to the changing labor arrangements. The gig economy labor force is freelance and contract-based. As a result, gig workers, as independent contractors, do not receive benefits, like health insurance, from the technology platform companies
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