What is the gig economy?
The gig economy, also known as the freelance economy, is a rapidly growing trend in the world of work.
This business model, in which individuals offer their services on a project-by-project basis rather than as full-time employees, has become increasingly popular in recent years, with millions of people around the world choosing to work as freelancers.
According to Statista, the gig economy in the US will more than double from 2018 to 2023, from $204 billion to $455 billion.
It is estimated that this year around 73 million people in the US are freelancers. This number is projected to rise to 90 million in 2028. According to the World Bank, nearly 47% of the global workforce are freelancers.
The highest concentration of gig workers is found in North America, Europe, and the Asia-Pacific region.
In a freelancer study from 2022, 76% stated that being their own boss was the reason they chose to become independent.
The average salary in the US and in Europe was $96, and the average salary in Asia, South America, and Africa were a little over $50.
The rise of digital labor platforms:
The digital economy has had a significant impact on the world of work and the gig economy in the past decade. The growth of internet connectivity, cloud computing, and information technologies has enabled the exchange of data and information between individuals, businesses, and devices.
Data is becoming an increasingly valuable asset in the digital economy.
This growth has also led to the proliferation of digital platforms, including digital labor platforms, which mediate work and have rapidly spread to multiple sectors due to advances in digital technology.
The COVID-19 pandemic has also accelerated the shift to remote work, further reinforcing the growth of the digital economy.
The increasing availability of technology and the internet has made it easier for individuals to find and connect with potential clients.
The rise of platforms such as Upwork, Fiverr, and Freelancer once played a significant role in the growth of the gig economy, as they provide a convenient way for freelancers to find and bid on projects. However, these sites take hefty commissions and are pay-to-play models.
Despite the potential benefits of freelancing, the gig economy has also been criticized for its lack of job security and benefits such as healthcare and retirement plans. Many freelancers are considered to be self-employed, which means they are not entitled to the same protections and benefits as traditional employees.
Wedo: the commission-free platform
One of the key benefits of using Wedo is that it is a commission-free platform. This means that freelancers can keep all of their earnings, rather than having to pay a percentage to the platform as a fee.
In addition to being commission-free, Wedo also offers a range of benefits for freelancers, including the ability to easily manage projects and communicate with clients, as well as access to a range of tools and resources to help them succeed in their work.
Overall, the gig economy is a significant and growing trend in the world of work, with millions of people around the world choosing to work as freelancers. While it offers convenience, flexibility, and the potential for higher incomes, it also comes with challenges such as a lack of job security and benefits.
As platforms like Wedo continue to evolve and offer more benefits and support for freelancers, it will be interesting to see how they impact the traditional workforce and the world of work as a whole.
If you want to find out more about the role of technology in the freelance economy and how Wedo supports freelancers and businesses:
The Role of Technology in the Freelance Economy: How Wedo is Supporting Freelancers and Businesses