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Many gig workers have it all together. They file an individual tax return online each year, boast beautiful home offices, make great contacts, have savings—they are true self-employed professionals. However, there’s one thing even these successful workers agree on: The gig economy is hard.
There are pros and cons, and it’s important to take on board both the grand and the grim so you can navigate it well. To help you consider how to approach this professional game of snakes and ladders, we’ve broken down the basics and then pulled apart the biggest pros and cons.
What Is The Gig Economy?
The gig economy is propped up by freelancers, temporary workers, and independent contractors who are paid per task rather than getting a regular salary. It can be exciting and lucrative, but it also comes with risks. Despite this, many people find the lifestyle incredibly appealing.
Why Is The Gig Economy Growing?
The gig economy is growing thanks to technology and the impact of the COVID-19 pandemic. Before the pandemic, less than 5% of people worked remotely, but at its peak, nearly 50% of employed people worked from home. Now, more people are pursuing entrepreneurial dreams, and companies continue to support remote work.
What Are The Pros And Cons Of Gig Economy Life?
Pros
One of the biggest perks of being a gig worker is the flexibility you get to enjoy. You can choose when and where you work, helping you to achieve work/life balance, something 20% of Americans would take a pay cut for.
You can also diversify your income by working with multiple clients, reducing financial risks. Most importantly, the gig economy gives you control over your work, enabling you to pick projects that align with your values, skills, and goals, making it a fulfilling career path.
Cons
Despite the many benefits of the gig economy, there are some pretty huge challenges too. One, is income instability, something over 30% of gig workers struggle with. It can make it hard to budget or plan anything financially.
Additionally, there’s a lack of benefits that you would otherwise get with an employed position. No health insurance, pension plans, sick pay—you can miss the support you’d usually get from a fully employed position. Indeed, around 42% of freelancers don’t have health insurance because it’s too costly, leaving them in a tricky situation should they need healthcare.
Job security is another gig economy downside that freelancers struggle with. Unless you have watertight contracts in place, you can have a client for a long time who simply ghosts you, and there is nothing you can do about it. Or, a change in the industry or global economy can mean plentiful work suddenly runs dry. This lack of long-term stability can be hard to deal with, especially if you only have a few clients you rely on.
Lastly, the loneliness of being a gig worker can be really hard. Your work colleagues may drive you crazy sometimes, but there’s something to be said for getting to see other humans every day. Sure, you can network and make connections with other freelancers, but a lot of the time it’s you hanging out with yourself. It’s no wonder more than 60% of freelancers say they often feel lonely.
So, Is The Gig Economy Right For You?
It’s important to consider all of the above when thinking about whether you want to be part of the gig economy. It can be exciting, lucrative, and freeing but also stressful, lonely, and financially difficult. By knowing all the grand and grim details, you can make more informed choices as you move closer to your career dreams.
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