Reference no: EM133333890
Assignment: Our topic is gig work. Gig work is defined as work which is not done on a regular schedule but rather on an as needed basis with the need coming from either economic demand of consumers or the worker. Our paper will examine the impact of social and economic consequences of gig work with a focus on financial and legal areas. This includes gig workers' efforts to unionize, and labor trends of gig workers such as age groups, educational background, career longevity, and compensation. This topic has gained prominence over the course of the COVID 19 pandemic as people had to stay in their homes and relied on gig workers to deliver food and other essential goods to them. Moreover, the flexibility and control gig work offers has made it an attractive option for people looking to try an alternative to traditional work. Watson reported that the "[COVID-19] pandemic has highlighted the importance of nonstandard work arrangements as an alternative to traditional full-time employment. Specifically, in light of COVID-19, mainstream media indicate that gig work has become a popular opportunity" (Watson et al, 2021, p.328). Our paper's goal is to present our research of gig work, identify any problems within its industry, and state the facts which this paper concludes.
The rise of gig work has a set of social and economic consequences. To provide a reference of the growth and current impact of gig workers, a 2020 Intuit report reported that 80% of larger organizations have plans to increase the use of gig workers. The report also suggested that smaller businesses will also follow this trend as it can help reduce labour costs and expand talent pools (Illuzi & Tang, 2021).
Given this predicted rise, there are direct social, and cenemic consequences gig workers and organizations should be aware of. Gig workers are essentially independent contractors, which means they do not get the same perks and benefits as employees employed by businesses. This means gig workers must pay for their own insurance, deduct their own taxes, independently save up for retirement, etc. This alone is a huge burden for gig workers and is a large cost. They lack job security and workers' rights that come from gig work are social consequences.
Economically speaking, the rise of gig workers had distorted the true unemployment rate. Under the unemployment rate in Canada, the following groups are people who are considered unemployed; people temporarily without work, seeking work and are available to work, and those who are meant to start work in four weeks (Statistics Canada, n.d.). When determining the unemployment rate, gig workers
The social and economic consequences of gig work represent the largest area which this paper will be researching. As stated, earlier gig workers' efforts to unionize and labour trends will be an area of sub-focus within these papers overarching research topic, financial and legal areas of gig-work. With this in mind our group released a survey to the general public with questions ranging from age groups, educational background, career longevity, and compensation. Moreover, there will also be questions on the public's demand for gig work and on whether or not gig work is a person's full time or part time job. There is also the question of gig work apps such as Uber, Doordash, and Lyft to name a few. The economic success of these companies will
What is gig work?
Gig work is a form of independent, contract or freelance work. Commonly digital platforms are utilized to help mediate, commission, supervise, deliver and/or compensate for the worker on a per job or contract basis (Myhill, et al, 2019). The term 'gig' work was taken from the music industry, as gigs were once defined as a single or short-term endevours at a venue. This structure of work allows gig workers a sense of independence and higher levels of autonomy when providing their goods and services as one can connect and manage potential clientele at their discretion.
Who uses gig workers?
Rather than full-time employees, gig work is composed of individuals who can temporarily fill non-permanent or part-time positions. Virtually anyone can partake in the gig economy as a worker, or consumer of gig work as various industries utilize these workers for example, Uber/Lyft driver, writing code, delivery drivers, freelance writers, photographers, etc (Myhill, et al, 2019).
Has gig work risen?
Gig work has shown to be on the rise, especially once the Covid 19 pandemic began in late 2019. Intuit QuickBooks found that in Canada, the casual work force had an exponential growth between the pandemic. Specifically, it was found that two million people started their own business within the year and 72 percent of those individuals worked on their business part-time, as a side business (Lindzon, 2021). Furthermore, as there was a rise in technology, it had a direct correlation with the use of gig work as well. The increased use of digital online platforms has allowed more organizations to use independent contractors for work (Howard, 2017).
How has gig work affected Canada?
The gig economy has been a boon for Canada, as it has allowed for more flexibility and independence for workers. It has also helped to create new jobs and industries, as well as to grow existing ones. Gig work and gig workers have become increasingly prominent in Canada's labor market. People who join gig work in Canada on average, tend to make less than the median of working families. This implies that while some gig workers surely make much more than national averages or medians, the average gig worker may be turning to gig work opportunistically to increase or replace an insufficient income. (Ziegler, et al, 2020)The gig economy has had a number of positive effects on the Canadian economy. Perhaps most importantly, it has given workers more flexibility and control over their careers. Rather than being tied to a single employer, gig workers can pick and choose the jobs they want to do, and work when and where it suits them. This can be a great way to earn extra money or to transition into a new career. The gig economy has also helped to create new jobs and industries. For example, the rise of ride-sharing apps has created a whole new market for people looking to earn money by driving others around. Similarly, the growth of online platforms like Airbnb has created new opportunities for people to rent out their homes or rooms to travelers. Finally, the gig economy has also helped to grow existing industries. For example, many businesses are now using gig workers to handle tasks like delivery or customer service, which has helped them to save money and become more efficient. According to Statistics Canada, self-employed temporary workers now comprise more than 20 percent of the labor force and are by far the fastest-growing labor group in Canada. Data in both Canada and the United States present an ongoing upward trend in people who are hired through the gig economy. (Ziegler, et al, 2020)
What are the pros and cons of gig work?
Gig work is a term used to describe a variety of short-term, contract-based, or freelance work. While gig work can be found in a variety of industries, it is most commonly associated with the rise of the sharing economy and the growth of companies like Uber, Airbnb, and TaskRabbit.
The pros of gig work allow workers to have a high degree of control over their work lives. They can choose when and where to work and are not obligated to a single employer. This can lead to a greater sense of freedom and flexibility and can be very profitable for those with other commitments such as childcare. For many people, gig work provides a welcome change of pace from the traditional 9-5 workweek. It can also be a great way to make extra money on the side or augment income. Gig work can also be a way to supplement income from other sources, or to earn money while pursuing other interests. One of the advantages is that there are no limitations. workers can do anything they want, as long as they have the skills needed to provide a task. (Kagire, et al, 2021)
The cons of gig work can include low pay, a lack of job security, and few or no benefits. There is also no guarantee of consistent work, which can make it difficult to plan for any expenses or save for the future. Additionally, gig workers are not entitled to benefits such as health insurance or paid time off, which can make it difficult to afford any unexpected costs or take time off when they need to. Gig work is often unstable and unpredictable, which can make it difficult to budget or plan for the future. Because there is no job security, workers may find themselves out of work unexpectedly. Since gig work is often done through online platforms, there is little to no customer service or protection if something goes wrong. And because gig work often doesn't come with benefits, workers may have to pay for their own health insurance and retirement savings. (Kagire, et al, 2021).
What industries most commonly use gig work?
Gig work has become a much discussed phenomenon and now that we have become familiar with the definition of gig work and its advantages and disadvantages, it is critical to discuss which industries most commonly use this type of work. An article written by Nicholson and Pekarek, refers to gig work as "the rapid spread of start-ups that connect and mediate between buyers and sellers in a range of markets, but particularly markets for in-person services" (2017) and provides examples such as Uber, Deliveroo, and Airtasker. From this, it is clear that service lies at the heart of the gig economy and service industries most commonly use gig work. These service industries range from caregiving and delivery to health and legal services.
What are the working conditions of gig workers?
While gig work as risen, its working conditions have not improved since its introduction. Gig workers have been subject to very poor working conditions. A lot of gig workers do not earn a livage wage and some also earn below the federal and provincial minimum wage (Howard, 2021). Such poor wages has resulted in 1 in 3 gig workers not being able to pay their essential bills and 1 in 5 gig workers not having enough money for food (Zipperer et al, 2022). Since gig workers are not classified as employees, they also lack several labour standards. For example, unemployment insurance, health and safety standards, and workers compensation, are a few labour standards gig workers lack (Zipperer et al, 2022).