A new reality — the so-called 'gig economy'

Earlier this month, Cape Girardeau Area Chamber of Commerce marketing and communications specialist Taylor Mazdra wrote a "Monday Morning Memo" article sharing a term, "gig economy," which is increasingly being used in the business community to refer to more of the 21st century workforce.

"Gig" is commonly associated today with the performing arts where people are paid for individual jobs, or gigs.

Earliest usage of the term may be traced to Jack Kerouac, the American novelist and poet who died in 1969, a pioneer of the so-called "Beat Generation" of the 1950s. In 1952, Kerouac wrote about his former job as a part-time brakeman for the Southern Pacific Railroad, describing it as a "gig," by which he meant any temporary paid job.

Today, a gig worker may also be called a freelancer or an independent contractor — the latter two terms quite old in business parlance.

James Stapleton is co-founder of Cape Girardeau's Codefi, a co-working space and technology incubator focused on economic growth.Submitted

James Stapleton, co-founder of Cape Girardeau's Codefi, describes gig employment from a tech perspective as "alternative work (that) can be delivered over digital networks anywhere broadband access is available."

Gov. Mike Parson is on record favoring continued broadband expansion to currently unserved or underserved communities in the Show Me State.

Mazdra's memorandum — available via the chamber's website to 800 businesses and their 1,400 representatives — echoes Stapleton's thoughts.

Two major factors, she wrote, contribute to the gig economy's rise.

• Our workforce has become more mobile.
• Work is increasingly done remotely via digital platforms.

A brief sampling of jobs in the gig economy includes substitute teachers, photographers for hire and drivers doing food or package delivery for fast-growing startup companies such as Uber or Lyft.

As Mazdra's memo points out, freelance employment has long been a staple of the U.S. economy but the technology explosion has seen the number of gig workers grow significantly.

Finance website www.fortunly.com has gathered data about this emerging field and the statistics compiled present a mixed bag of results.

Dominic Hrabe holds the family dog, Grace, in front of a home he rented out for Super Bowl weekend in Phoenix in 2015. J.K. Lasser's Self-Employment Guide says people in the on-demand or gig economy have tax implications to consider since they do not work for an employer automatically withholding income, Social Security and Medicare taxes.Ross D. Franklin ~ Associated Press, file

• Globally, 52% of workers who participate in the gig economy lost regular employment because of COVID-19.
• Total income generated by freelancing is nearly $1 trillion.
• An estimated 57% of contract workers work more than 40 hours weekly.
• Gig workers, on average, earn 58% less than full-time employees and more than half don't have access to employer-provided benefits.
• By 2023, 52% of the U.S. workforce will either be employed in the gig economy or will have worked independently at some point in their careers.
• Millennials and baby boomers dominate the gig sector, comprising 37% and 35%, respectively.
• The largest employer of U.S. gig workers is the public sector (government).
• The highest-paying freelance, or gig employment, is found in artificial intelligence and blockchain architecture (e.g., Bitcoin).

Advantages

Primary benefit of a job in the gig economy seems to be more flexible working conditions with improved work-life balance often cited.

For businesses, gig workers save them money and resources. To cite one anecdotal example, Uber owns no vehicles but receives a commission from every driver booking.

Disadvantages

Most frequently cited downside of the gig economy is a usual lack of health and associated benefits commonly provided in full-time employment.

Additionally, without employer withholding, gig workers have to be disciplined to set aside money for quarterly tax payments.

Odds 'n' Ends

• www.Fortunly.com reports, at present, the U.S. has roughly 170 gig economy companies, meaning firms only hiring remote workers.
• Top U.S. states for remote workers are Delaware, Washington, New Hampshire, Colorado and Georgia.
• One sobering statistic from www.fortunly.com: nearly 90% of America's freelancers wish their education had prepared them better for gig work.

Last word

Stapleton's work leads him to keep abreast of U.S. work trends.

"Most research I've come across indicates gig workers, more than most, desire vibrant communities with quality amenities and with entertainment options desired by younger workers and families," he said.

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