THE RISE OF THE GIG ECONOMY: THRIVING IN A WORLD OF FREELANCE
Iwuese Yongo
The gig economy, also known as the sharing or on-demand economy, refers to a labour market characterized by short-term, flexible, and often freelance work arrangements. In this economy, individuals engage in various types of work, such as driving for ride-hailing services, delivering food, completing tasks, or offering professional services, on a project-by-project basis. The gig economy has revolutionized the way people work and earn a living, and it is an exciting time to be a part of it. With the rise of platforms like UberAirbnbTaskRabbit-to-5pm or 8am to 4pm jobs depending on various time zone as the case maybe and can now choose when, where, and how they work. This flexibility is particularly appealing to those who value work-life balance, want to pursue multiple passions, or need to juggle other responsibilities. It also help some people to have a good balance score card for family and work life.
The gig economy has been developing quickly throughout the last ten years. As per a report by Intuitur force by 2025.
In Nigeria, the gig economy has been growing rapidly over the last decade, with more people opting for flexible, non-traditional work arrangements. According to the Nigerian Bureau of Statistics, in Q3 2023, 87.3% of employed Nigerians were primarily self-employed, with only 12.7% being primarily engaged as employees. While not all self-employed individuals can be classified as gig workers, there are overlaps between these worker arrangements, and most gig workers are treated as independent contractors.
As of 2023 according to Nigerian Bureau of Statistics, there were about 17.5 million online gig workers in Nigeria, Kenya, and South Africa, accounting for 80.6% of Internet traffic flow to online gig platforms from Sub-Saharan African countries. This number is expected to continue growing as the gig economy expands, driven by factors such as a growing youth population, high unemployment rates, economic pressures, technological advancements, and workers’ desire for flexibility and autonomy. It’s worth noting that the gig economy presents both benefits and challenges for workers, businesses, and the government. Gig workers enjoy flexibility and autonomy, access to remote international opportunities, and broader earning potential, but they also face challenges such as exploitation, irregular payment cycles, and infrastructure limitations. Recent trends indicate that the gig economy is becoming an increasingly important part of the overall economy as more people choose flexible, non-traditional work arrangements over or in addition to traditional employment. Further statistics according to the World Bank suggest that , there are 545 online gig-work platforms globally, with headquarters in 63 countries and platform workers and clients in 186 countries. Online gig-work accounts for 4.4-12.5% of the global labour force, with an estimated 154 to 435 million online gig-workers worldwide.
Again as prostulated by the Nigerian Bureau of Statistics, the overall quantity of specialists in the gig economy of the labour force in Nigeria is significant and continues to grow, with millions of people engaging in online gig work and other forms of non-traditional employment. This shift is driven by a blend of elements, including:
Technology advancement and innovation, which have made it more straightforward for individuals to work from a distance and associate with clients globally.
Changing laws, labour force socio-economics, including the ascent of the millennial age, which values adaptability and independence.
Characteristics of the Gig Economy:
Short-term work arrangements: Workers are hired for specific projects or tasks, often with no guarantee of ongoing employment.
Flexibility: Workers can choose when, where, and how much they want to work, allowing for greater flexibility and autonomy.
Variety of work: The gig economy encompasses a wide range of industries and tasks, from transportation and delivery to professional services and creative work.
Digital platforms: Online platforms and applications (Apps) facilitate connections between workers and customers, often using algorithms to manage the workflow such as Uber, Bolt, Jumia to mention a few.
Independent contractors: Workers are often classified as independent contractors, rather than employees, which can affect their access to benefits, job security, and labour protections.
The gig economy has both benefits and drawbacks. On the one hand, it offers: Flexibility and autonomy where workers can choose their own schedules and work at their own pace. Opportunities for entrepreneurship; the gig economy provides a platform for individuals to start their own businesses or offer their skills to a wider market and access to a global market where digital platforms can connect workers with customers from all over the world.
On the other hand, the gig economy also raises concerns about: Job insecurity; workers may face uncertainty about their next project or income. Lack of benefits; independent contractors often do not have access to traditional employee benefits, such as health insurance, paid time off, or retirement plans. Exploitation; some platforms have been criticized for exploiting workers, paying them low wages, or subjecting them to poor working conditions.
Advantages of the Gig Economy
The gig economy offers various advantages for laborers, including:
– Adaptability and independence: Independent work permits individuals to pick their own undertakings, set their own timetables, and work from anyplace, allowing them to balance their work and personal lives.
– Limitless procuring potential: Specialists can take on as numerous or as couple of activities as they like, permitting them to acquire so a lot or as little as they need, depending on their skills, experience, and availability.
– Potential chance to seek after purposeful ventures: Independent work permits individuals to seek after projects that they are energetic about, instead of simply taking care of business for a check. Freelancers and independent contractors have the autonomy to work on their own terms, choosing projects and clients that align with their skills and interests.
-Diversified income streams: Freelancers and independent contractors can work on multiple projects and platforms, diversifying their income streams and reducing their dependence on a single source of income.
-Opportunities for entrepreneurship: The gig economy provides opportunities for entrepreneurship, as workers can create their own businesses and offer their services to clients.
-Access to a global market: The gig economy provides access to a global market, allowing workers to work with clients and customers from all over the world.
-Increased productivity: The gig economy allows workers to work in a setting that is most productive for them, whether that is at home, in a coffee shop, or in a co-working space. As such, freelancers and independent contractors do not have to worry about overhead costs such as office space, equipment, and utilities.
-Improved work-life balance: The gig economy provides workers with the flexibility to balance their work and personal lives, allowing them to pursue their passions and interests outside of work. It also reduces stress, as workers are not tied to a traditional 9-to-5 job and can work at their own pace.
-Opportunities for skill development: The gig economy provides opportunities for workers to develop new skills and learn new things, as they work on a variety of projects and with different clients. It also allows workers to be more creative and innovative, as they are not limited by traditional job descriptions and can work on a variety of projects.
To thrive in this world of freelance work, it is pertinent to be adaptable, resilient, and open to learning new skills. Diversifying your income streams is crucial, as it can help you mitigate the risks of irregular work and financial instability. This might involve taking on multiple gigs, investing in professional development, or exploring different industries and niches.
Another key aspect of succeeding in the gig economy is building a strong professional network. This can help you find new opportunities, get recommendations, and stay connected with other freelancers and potential clients. Continuous learning is also vital, as it enables you to stay up-to-date with the latest trends, technologies, and best practices in your field.
For businesses, the gig economy presents a unique opportunity to scale up or down quickly, access a global talent pool, and reduce costs associated with traditional employment. However, it’s crucial to navigate the complex regulatory landscape and ensure that you’re providing fair working conditions and benefits to your freelance workers.
Ultimately, the gig economy is all about embracing flexibility and autonomy, and being open to new opportunities and challenges. By being proactive, adaptable, and committed to continuous learning, you can thrive in this exciting and rapidly evolving world of freelance work.
