As the growth of the global gig economy continues to rise, more and more people are attracted to the flexibility that this business model offers. But before you consider participating in the gig economy, it’s important to understand exactly what it entails and its future impact.
What is the gig economy?
The gig economy is referred to as a flexible workforce. In a gig economy, companies practice a free market system, where employers prefer to hire a part-time or contractual worker as compared to permanent or full-time positions.
The gig economy has seen robust growth globally over the past few years driven by tech development and its search within the global talent market. It has reshaped global demand for talent, encouraging companies to search for workers skilled in Cloud Migration, DevOps, Cyber Security, Data Engineering and Science, as well as those experienced in Agile Methodology, Full-stack.
Choosing flexible and remote working models, especially for start-ups, aims to attract the best talent as they work and can reach each other from anywhere in the world, at any time. Since 2014, the Hong Kong startup scene has rapidly grown, with the majority of startups operating in the E-commerce (22%) and FinTech (12%) sectors.
In recent years, however, riding on the growing popularity of digital platforms like Uber, Airbnb, Deliveroo, Foodpanda and TaskRabbit, the term “gig economy” is increasingly associated exclusively with service transactions arranged through digital platforms.
The onset of the pandemic has normalised remote work and work-from-home (WFH) as features of a flexible workforce within the traditional corporate sectors. The gig economy also proved to be a lifeline for many during lockdown-imposed restrictions and for those in self-isolation.
What does the gig economy mean?
The gig economy represents a free market system in which organisations and independent workers engage in short-term work arrangements. Gig workers often have the freedom to control their own schedules, projects, and the amount of work they dedicate to the job.
In 2021, the global gig economy was estimated to reach a worth of USD 347bn. This estimate represents a greater than 50% increase from a market value of USD 204bn in 2018. According to research conducted by Mastercard, the gig economy is expected to grow to USD 455B by the end of 2023 in gross volume transactions. In other words, this means that the economic output the global gig economy more than doubles every 5 years.
Common gig economy jobs
The gig economy workforce comes in the form of part-time workers, freelancers, project workers, software developers, accountants/financial advisors, lawyers, specialists, independent contractors, and full-time devotees who rely on on-demand jobs as their main source of income.
Sectors like financial services, banking, construction, real estate, trade and manufacturing, supply chain, accounting, sales and marketing, transportation, food and beverages, the music industry, film/video editing, digital content and design, and healthcare are where most of the gig economy jobs are.
JobDoh, a Hong Kong-based startup that focuses on matching the gig workers to jobs by relying on their AI-based system, has disclosed that the majority of their users are being placed in the Event Management, Hospitality, and Food Service industries.
Upwork and Fiverr are popular platforms offering global freelance services across a range of different industries, and UpCounsel offers legal solutions.
For the last six years, Hong Kong has seen a 40% rise in the population of the gig economy workforce. This increase has encouraged employers to improve diversity in their workforce strategies. Some choose freelancers not because of the autonomy and control it provides, but as a stepping stone to a better job. Others do it to earn extra income or because it’s the only option available.
Coworking spaces and the gig economy
The same way technology has driven the surge in the global gig economy, the evolution in physical workspaces is making room for the gig economy also. The demand for coworking spaces has risen alongside flexible working hours and an increase in remote work.
All-inclusive workspace solutions like WeWork are an ideal environment for freelancers and creatives alike. Expansive lounges and art-filled conference rooms provide ongoing inspiration, while hot desks and premium amenities keep you focused and connected. Some WeWork buildings, recording studios, podcast facilities, and brainstorming spaces give rise to artistic pursuits, while frequent community events at every location help you find fresh collaborators.
Benefits of being a gig worker
Flexibility is the number 1 benefit of being a gig worker. This includes both time and income flexibility. Younger workers and couples tend to have more family obligations, so time flexibility is extremely important when balancing work and home responsibilities. Being a gig worker means you can take on as much work as you like and earn good money but always keep in mind that there are times when it may become unstable, for example, if competition is high or if the nature of work doesn’t pay very well.
In Hong Kong, there is an hourly minimum wage in place to protect gig workers, but the minimum wage, compared to the high cost of living, is considerably lower. The basic rule to gig work is to join as many social platforms and groups as possible to get maximum exposure.
Based on numerous research and publications, there is a general consensus that people who decide to freelance full-time are quite satisfied with the change as well as with their new careers and lifestyle.
According to a 2019 report by PYMNTS, 75.7% of freelancers would not quit their gig for a full-time job. Furthermore, they found that 60% of gig-dependent workers lack alternative employment because they don’t want or need one.
As the growth of the global gig economy continues to rise, it is becoming one of the important mainstays of the economy offering employment opportunities amidst the “new normal” that now dictates the workforce landscape.
If you’d like to learn more about our flexible co-working spaces designed for freelancers and remote workers, please visit wework.hk to connect with us today.