Gig Economy Definition and Pros and Cons - investopedia.com What is the gig economy?

The term gig economy refers to a free market system in which traditional businesses hire independent contractors.The term comes from the performing arts world.They are paid for their individual appearances.

Workers in the rapidly-evolving gig economy face an increased risk of financial hardship because they are not responsible for their own income and benefits.Gig economy jobs are great until they are not.

gig workers earn all or part of their incomes from short-term contracts under which they are paid for individual tasks, assignments, or jobsGig economy companies that hire people to use their personal vehicles to provide taxi-like, on-demand ride services use internet and smartphone-based applications to both hire and assign workers.

Part of gig worker's total income is accounted for by each individual gig or assignment.gig workers can realize cumulative earnings equal to conventional full-time jobs if they combine several tasks for different companies.Some gig workers drive their cars for both companies, along with renting out rooms in their homes.Some people use gig jobs to make ends meet.

One aspect of the gig economy involves so-called digital earning platforms, which allow people to earn money by selling their used items or personal creations, and online handyman services, like TaskRabbit.

The gig economy reflects and facilitates the desire of young people to have more flexibility in their work lives, often changing jobs several times during their lifetimes.The popularity of the internet has caused the gig economy to thrive.

34% of U.S. workers were gig workers during the year.29% of workers in the U.S. have an alternative work arrangement.Half of all part-time workers are included.According to the report, 36% of job holders have a gig work arrangement.

The combined digital economy grew by an average of 5.6% per year from 2006 to 2016 compared to 1.5% growth in the overall economy according to the Bureau of Economic Analysis.According to the BEA, the digital economy supports about 6 million jobs, or 4% of total US employment, similar to industries like finance and insurance, wholesale trade, and transportation and warehousing.

The gig economy is predicted to grow even faster as more people become familiar with using mobile devices to arrange for personal services and buy and sell products.According to Digital Trends, there will be at least 6.1 billion people with a phone by the end of 2020.

The gig economy is mostly a win-win for employers.Overhead costs like office space, training, and benefits are not required for businesses to quickly contract with experts for individual projects.It can be a mixed bag for gig workers.

The growth of the digital economy shows that consumers relish and demand the convenience, choice, and potential cost savings of gig services and sales, but the gig economy also poses a threat to public safety.

Gig workers do skilled jobs with little or no training or experience because of the remote hiring processes.Passengers of online ridesharing services are often unaware of their driver's skill level, license status, or criminal background.