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The Gig Economy Explained

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When I first read about this term I thought it was a typo for “Big economy”. It turns out I was wrong and that ‘gig economy’ is a legitimate emerging trend.

‘Gig’ is the slang used by many to refer to temporary work and the reference is quite the same in the context of the gig economy. A gig economy is a market system in which temporary positions are common and companies engage independent providers for short-term engagements. The Gig workforce could include freelancers, independent contractors, and temporary or part-time hires.

There are a number of forces behind the rise in short-term jobs. One such force is that in the digital age the workforce is increasingly mobile and work can increasingly be done from anywhere. This means that freelancers can find temporary jobs and projects around the world, while employers can select the best individuals for specific projects from a larger pool than that available in any given area.

There are downsides as well. It can be seen as a strategy by employers to reduce costs by exploiting the workforce. Temporary workers would require fewer benefits such as health insurance and paid leave. In addition, the unavailability of a consistent stream of income may have adverse effects on many households. 

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