What is the gig economy and its impact on the job market
Discover this type of work, which is gaining popularity in the New Economy
With the advancement of new ways of working and the changes brought by New Economy, the gig economy. In this environment, professionals offer their services through digital platforms, in which flexible, occasional and non-permanent contracts prevail.
The interest of companies and workers in the gig economy has grown simultaneously with the advancement of the digital era in recent years. Some of the professionals who already work in the model are teachers, drivers, delivery people and advertisers, among others.
An example: 31% of workers in the transport, storage and mail sector work in this modality, according to data released by the Institute of Applied Economic Research (Ipea) in October 2021. Also according to the institute, the rise of application platforms for delivering goods was one of the main facilitators for more short-term hiring.
Another sector that gained strength with the gig economy was passenger transport. Due to the Covid-19 pandemic, 1.1 million people employed in passenger transport were self-employed in the first half of 2021, a value 37% higher than at the beginning of the series, in 2016.
One of the main characteristics of the gig economy is the possibility of communication and hiring through digital means — the platforms. Previously, to hire a temporary or short-term service, it was necessary to contact professionals by phone or go to certain locations in person. Today it is much easier to hire these professionals and their services from anywhere in the world.
Myths and Truths of the gig economy
1 – This name is inspired by jazz bands
TRUE. The term first appeared in the early 20th century, when members of jazz bands began using the term gig (short for giant) to refer to performances. This is because they were part of one of the few categories that had flexible schedules.
2 – Professionals only do odd jobs in the gig economy
MYTH. Workers who opt for this modality have heterogeneous interests. Some provide services through digital platforms to supplement their income, while others have this type of work as their main source of income.
3 – Generation Y is one of the most present in the gig economy
TRUE. For many professionals between the ages of 18 and 35, a common desire is to leave conventional work. Flexibility and remote work are aspects that attract the attention of so-called millennials.
Read more:
New Economy: how the data driven model is applied in companies
How Brazil discusses new laws for platform work
FGV Direito SP survey reveals the challenges of regulation in Gig Economy in Brazil
