Labor market is changing rapidly. Gig economy is the new norm. In a gig economy workers work as short-term contractors or freelancers rather than as full-time employees. This is often facilitated using an online platform with phone app interface.
In the gig economy, you have the freedom to choose your hours, the work that you would and would not work, and there is generally no boss you have to answer to. On the flip side, you are on your own. There is no paid sick leave, paid vacations, medical coverage, life insurance, or any employer paid benefits. You have no protection or safety net.
If you are injured while delivering a package for FedEx, you are entitled to paid leave and your medical expenses will be covered by your employer’s insurance. If you are injured working for Uber, you get nothing. With FedEx, your boss tells you what to do and when to do it. You have to show up on time and your time is managed by your employer. With Uber, there is no obligation for you to work at any given time. You work when you want to and don’t work when you don’t want to.
With most gig jobs, over the long term, you make less than minimum wage after you add all your expenses and time you put in. I have tried several gig jobs such as proofreading, transcription, programming, and other work. In all cases, I would have earned more per hour if I were an employee. Some workers improve their per hour earnings by streamlining their work process. For example, the person who created my book cover on fiverr only creates book cover of a certain kind. She has her Photoshop templates built such that it would take her a short amount of time to put the book cover together. This allows her to make more per hour.
In the gig economy, the software company running the gigs have all the power and tend to keep the lion’s share of the fruits of your labor. The services are designed such that it is generally not evident that you are making less than minimum wage. Laws haven’t caught up to the gig economy so companies offering gig services are very profitable.
There is another class of gig jobs where you have to market yourself or your services. Such jobs tend to let you keep a greater share of the fruits of your labor. For example, Udemy instructors and YouTube influencers can make large sums of money. However, it requires a lot of hard work and consistent marketing to attract a crowd to your creation. Most people offering their content platforms such as YouTube make very little money.
It should be noted that the content platform has all the power. Youtube can change its payment structure anytime without even asking you. The platform’s success and failure will directly impact your revenue stream. In 2016, Udemy stopped offering discount coupons. Suddenly traffic and revenue fell for almost every instructor. The revenues rebounded once the company realized its blunder and reversed its decision.
Gig economy is just in its infancy and it is here to stay. You should still pursue real careers such as accountants, doctor, lawyers, and engineers that require a university degree. Most gig jobs pay less than minimum wage so give preference to part-time work over a gig job. You can ensure a decent stream of income by offering content. However, be aware that you would need to market your content. In addition, don’t base your revenue on one platform alone. Build your brand over multiple platforms.
