Why the Gig Economy Will Continue to Grow
Today, approximately one in three workers are freelancers. It is predicted that by 2020, half of all U.S. workers will be freelancers. A recent article by Forbes highlighted the reasons for this trend as well as some of the challenges these gig workers will face moving forward.
- The educational gap may be contributing to the growing gig economy. By 2020, the United States will have 1.5 million fewer college-educated workers than the economy needs. Given this, companies will need to be more flexible. They will have to expand geographically to fill their needs. They will also have to rely on gig workers for needs that cannot be fulfilled from full-time hires. In addition, workers lacking formal education are likely to be forced into unskilled gig work.
- Changing attitudes toward work are driving more people into freelancing. With Millennials and Gen Z employees in the workforce, previous attitudes about work are changing. Freelance work is becoming more appealing to these generations because it allows them to prioritize things that are important to them. Freelance work also affords them the ability to travel, spend time with family, work from home, and avoid workplace politics. In addition, freelancing may provide these generations with a chance to choose companies and projects that are appealing.
- Employers are increasingly using gig workers to lower costs and meet project needs. Companies are utilizing freelancers to lower their overheard costs. In fact, 66 percent of large companies are using freelancers to lower labor costs. Approximately 58 percent of companies report that they use gig workers to access skills and experience that are currently unavailable in the workforce.
- Technology and infrastructure are growing to accommodate freelancers. Technologies such as cloud computing and advanced networks make remote work widespread. There are also many apps and software that allow workers to do video conferencing, project management, and other tasks remotely.
To ensure you are contracting with the right people for your organization, consider a CMA assessment.