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GLOSSARY

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Gig Economy

The gig economy is a labour market where people work on short-term contracts or freelance work instead of holding traditional full-time jobs. In this workforce environment, individuals offer their services to clients on a project-by-project basis, usually through digital platforms.

Gig economy meaning and examples

The gig economy allows people to work independently, taking on jobs one at a time rather than being permanently employed by a single company. If you’ve ever used an app to order a ride-hailing service, book a vacation rental, or purchased a handcrafted item online, you’ve likely participated in the gig economy. This economic model involves the exchange of labour for money between individuals or companies through digital platforms that connect service providers with customers on a short-term, task-based basis.

Examples of gig economy jobs

In today’s evolving economy, the gig and freelance markets have opened diverse opportunities for individuals to earn income, develop skills, and work with greater flexibility. From digital freelancing to delivery and transportation, task-based jobs, and creative services, there’s a space for everyone to explore and thrive. Here are some gig economy jobs:

  1. Digital freelancing
    This involves providing services through online platforms or directly to clients, typically on a project or contractual basis. Some job roles are:
    • Web developers: Professionals who create and maintain websites, ensuring functionality, performance, and user experience. Skills in coding languages like HTML, CSS, JavaScript, and frameworks are essential.
    • Graphic designers: Experts in visual communication, creating designs for logos, websites, marketing materials, and more, using tools like Adobe Photoshop, Illustrator, or Canva.
    • Content writers: Individuals specialising in crafting written content such as blog posts, articles, website copy, and marketing materials, often focusing on SEO optimisation.
    • Virtual assistants: Remote workers who support businesses or individuals with administrative tasks, scheduling, email management, data entry, and other operational needs.
  2. Delivery and transportation
    This category includes roles where individuals transport goods or passengers using personal or company-provided vehicles. Some popular roles are:
    • Rideshare drivers: Drivers using platforms like Uber and Lyft to provide transportation services to passengers. Flexible hours and reliance on good customer ratings are key.
    • Food delivery drivers: Those delivering meals through platforms like GrabFood, Gojek, or DoorDash, relying on mobile apps to manage orders and navigate to destinations.
    • Courier services: Workers who transport packages, documents, or goods for individuals and businesses, often under tight schedules and requiring excellent time management.
  3. Task-based work
    Short-term or specific-task jobs often requiring minimal long-term commitments. This include:
    • Online tutoring: Educators providing virtual lessons on subjects ranging from academics to languages, often requiring subject-matter expertise or teaching certifications.
    • Proofreading: Specialists reviewing written content for grammar, punctuation, and formatting errors, ensuring clarity and professionalism.
    • Data entry: Workers inputting, organising, and managing data in digital formats for businesses, requiring accuracy and attention to detail.
    • Transcription: Professionals converting audio or video content into written text, often in fields like medical, legal, or general transcription services.
  4. Creative services
    This type of work often involves artistic skills, often for personal or commercial projects, including:
    • Photographers: Experts capturing moments or creating visual content for events, marketing campaigns, or personal projects. Post-production skills in editing software are often necessary.
    • Videographers: Creators of video content for businesses, events, or social media, with skills in filming, editing, and storytelling.
    • Musicians: Performers or composers providing live music, studio recordings, or soundtracks for various events and projects.
    • Artists: Creators of traditional or digital artworks, including illustrations, paintings, or sculptures, often for commercial or custom orders.

Industry-specific gig economy examples

The gig economy has also made significant inroads into specialised industries, offering professionals in healthcare, education, and technology new ways to apply their expertise on a flexible basis. These roles cater to niche skills and are often facilitated by platforms or direct client relationships, providing opportunities to work independently while addressing specific industry demands. Here’s an elaboration on each industry-specific category:

  1. Healthcare
    The healthcare sector has embraced the gig economy, enabling professionals to provide essential services remotely or on a per-need basis:
    • Telemedicine: Physicians and medical professionals offering virtual consultations and diagnoses through platforms like Teladoc Health or MDLIVE, ensuring accessibility for patients from anywhere.
    • Nursing: Freelance or per-diem nursing roles, where professionals work short-term shifts in hospitals, clinics, or patient homes, providing critical care as needed.
    • Home healthcare: Professionals delivering in-home support for patients, such as assisting with rehabilitation, elderly care, or post-operative recovery, often arranged through agencies or direct hire.
  2. Education
    Professionals in this sector are also finding new ways to share their knowledge and expertise through gig roles:
    • Online tutoring: Tutors providing one-on-one or group lessons in subjects like math, languages, or test preparation via platforms like VIPKid or Tutor.com, catering to students worldwide.
    • Teaching: Independent educators offering classes in specialised topics such as coding, music, or art, often through online platforms like Udemy or Teachable.
    • Curriculum development: Professionals designing educational content or lesson plans for schools, companies, or online platforms, combining creativity with subject-matter expertise.
  3. Technology
    The tech industry’s demand for skilled professionals has created a thriving gig economy for tech-related roles:
    • Software development: Freelance developers creating applications, websites, or custom software for businesses, often through platforms like Upwork.
    • IT support: Specialists providing remote or on-site technical assistance to troubleshoot hardware or software issues for individuals or companies.
    • Cybersecurity consulting: Experts offering guidance and solutions to protect businesses from cyber threats, including system audits, vulnerability assessments, and training programs.

Platforms for gig workers

The gig economy thrives on platforms that connect workers with opportunities, offering flexibility and access to a wide range of tasks across industries. These platforms serve as intermediaries, enabling gig workers to showcase their skills, find clients, and earn income efficiently. Here’s an elaboration on some of the most popular platforms supporting gig workers:

  1. Freelance platforms
    These platforms cater to professionals seeking project-based or contractual work across various fields. Platforms like Upwork and Freelancer, enable freelancers and gig workers find project-based roles like data entry, marketing, graphic design. Freelancers can typically bid on projects, track their work, and handle payments through the platform.
    Gig workers, especially in the IT sector, can also leverage CXC’s Out of Office (OOO) to find job opportunities and network with fellow contractors.
  2. Rideshare and delivery platforms
    These platforms focus on transportation and delivery services, allowing workers to earn by using their own vehicles or resources. Some popular rideshare and delivery platforms are Uber and Grab, which provides gig opportunities with flexible work schedules for drivers. These platforms also offer additional earnings through incentives.
  3. Task-based platforms
    These platforms offer gig workers access to short-term or one-off tasks, often requiring minimal specialised skills. Platforms like TaskRabbit allows gig workers to complete local tasks such as furniture assembly, moving assistance, or home repairs. There are also crowdsourcing platforms like Amazon Mechanical Turk that allows workers to complete microtasks such as data entry, surveys, and content moderation, suitable for workers looking to earn income remotely in their spare time.

Advantages of the gig economy for employers

The gig economy provides significant advantages to employers, transforming how businesses manage their workforce and resources. By leveraging gig workers, companies can achieve greater efficiency, access specialised skills, and adapt quickly to market demands.

Cost-effectiveness

Employers can save on labour costs by engaging gig workers for specific projects or tasks, avoiding long-term commitments and overhead expenses. There’s no need to provide benefits like health insurance, retirement contributions, or paid leave since gig workers are typically classified as independent contractors. This means employers are not responsible for payroll taxes and employee benefits. Businesses only pay for completed work or agreed-upon deliverables, ensuring cost alignment with output.

Scalability

Gig work allows businesses to adjust their workforce size according to market demands, making it easier to respond to fluctuations. Companies can quickly onboard workers during peak periods or for short-term projects. When their services are no longer needed, employers can release gig workers. This is ideal for industries with seasonal variations, such as retail or tourism.

Access to specialised talent

The gig economy connects businesses with a global pool of skilled professionals, enabling access to niche expertise and broadening their talent base. Companies can hire specialists for unique tasks like app development, graphic design, or data analysis without needing a full-time employee, making it easier to handle advanced or technical projects.

Increased flexibility

Gig workers provide flexibility in scheduling and work arrangements, aligning with the dynamic nature of modern businesses. Employers can assign tasks to gig workers at unconventional hours, such as overnight or weekends, to meet deadlines or maintain operations. Many gig workers operate remotely, reducing the need for office space and enabling work across different time zones. Gig workers can also quickly adjust to shifting project requirements, offering businesses the agility to innovate and evolve.

Related: 14 ways your business can benefit from the gig economy

Challenges gig workers face and how to overcome them

While the gig economy offers flexibility and opportunities, gig workers often encounter significant challenges that can impact their financial stability and well-being.

Lack of job security

One major challenge is the lack of job stability. Since gig workers are not tied to long-term contracts, their income can be unpredictable. For instance, a ride-share driver might earn less during off-peak hours or experience fewer rides during economic downturns. This instability can make it difficult to plan for the future or secure loans.

No benefits or protections

Gig workers typically do not receive benefits such as health insurance, retirement contributions, or paid leave.

Income variability

Earnings in the gig economy can fluctuate widely. A freelance graphic designer might have a month full of projects followed by weeks with no work. This irregular income makes budgeting challenging and can lead to financial stress.

Workplace safety risks

Certain gig jobs, like delivery services or construction, come with physical risks. In some cases, platform companies do not provide adequate training or equipment to ensure worker safety.

Isolation and lack of support

Gig work is often solitary, with little to no interaction with coworkers. This can lead to feelings of isolation and a lack of professional support networks. Unlike traditional employees, gig workers don’t usually have access to HR departments or unions to address workplace concerns.

Limited legal protections

In many regions, labour laws do not fully cover gig workers, leaving them exposed to unfair treatment. For instance, some platform companies may deactivate a worker’s account without clear justification or recourse, cutting off their primary source of income.

Despite these challenges, ongoing discussions and legislative efforts in various countries are in the works to improve conditions for gig workers, helping them achieve greater security and stability while maintaining the flexibility that the gig economy offers.

How gig workers can overcome these challenges

Despite the hurdles, gig workers can take steps to improve their work experience and financial security, such as:

Building a financial safety net
Gig workers should aim to save a portion of their earnings to create an emergency fund that can help during periods of low income. Budgeting tools and apps can assist in tracking income and expenses to manage finances more effectively.

Securing health and insurance plans
While employers don’t typically provide benefits, gig workers can explore private health insurance options or join organisations that offer group insurance plans. Platforms specifically designed for freelancers often provide affordable coverage for health, liability, and income protection.

Expanding skills and networking
To stay competitive, gig workers can invest in skill development through online courses, certifications, or workshops. Building a professional network through social media, industry events, and online communities can also help secure more consistent job opportunities.

Diversifying income streams
Relying on one platform or type of gig can be risky. Gig workers can reduce this risk by diversifying their income streams, such as taking on multiple types of gigs or working with several platforms to maintain a steady flow of opportunities.

Using technology to improve efficiency
Leveraging productivity tools can help gig workers manage tasks more efficiently, freeing up time to take on more projects and increase earnings. Tools for time tracking, project management, and communication can streamline workflows.

Gig economy workers’ rights
As the gig economy grows, so does the conversation about protecting the rights of gig workers. In many countries, gig workers face challenges such as lack of job security, no guaranteed minimum wage, and limited access to benefits like health insurance or paid leave. However, some governments are stepping in to improve their working conditions.

For instance, the European Union recently introduced directives for platform workers. These directives require companies to provide greater transparency around working conditions, ensure fair pay, and clarify the employment status of gig workers to prevent exploitation.

In Spain, a law known as the Riders Law mandates that food delivery riders working for digital platforms must be classified as employees rather than independent contractors, giving them access to benefits such as social security and paid time off.

Meanwhile, in the United Kingdom, court rulings have led to changes in how gig workers are treated. For example, Uber drivers are now classified as “workers,” a legal status that grants them minimum wage, holiday pay, and pension contributions.

Australia has also made progress by introducing regulations to ensure fair pay and safe working conditions for gig workers in industries like food delivery.

How to manage gig workers effectively

Effectively managing gig workers involves clear communication, efficient project management, and fostering positive relationships. Here are some key strategies:

Set clear expectations
From the outset, establish clear expectations regarding deliverables, deadlines, and payment terms. Providing a detailed project brief helps gig workers understand the scope of the task and avoid misunderstandings.

Maintain open communication
Regular communication is essential for ensuring that projects stay on track. Use tools like email, messaging apps, or video calls to check progress and address any questions or concerns. Offering constructive feedback helps gig workers improve their work and meet your expectations.

Utilise project management tools
Project management tools like Trello, Asana, or Monday.com can help track progress, set deadlines, and assign tasks. These platforms allow both employers and gig workers to stay organised and ensure timely delivery of work.

Offer fair compensation
Paying competitive rates and ensuring timely payments demonstrate respect for gig workers’ time and skills. Fair compensation helps attract top talent and encourages gig workers to prioritise your projects over others.

Foster positive relationships
Building strong relationships with gig workers can lead to long-term collaborations. Expressing appreciation for their work, offering positive feedback, and maintaining a professional yet friendly tone can make gig workers feel valued and motivated to deliver their best.

Be flexible and respect their independence
Remember that gig workers value flexibility and independence. While clear guidance is important, avoid micromanaging and allow them the freedom to complete tasks in their preferred way, as long as it meets the agreed-upon standards and deadlines.

How we can help?


Finding and hiring talent can be challenging, costly, and time-consuming. However, with CXC as your flexible staffing partner, this doesn’t have to be the case.

With more than 30 years of experience in the contingent workforce space, our team of experts is here to guide you every step of the recruitment process. Whether you need temporary staffing or remote workers, we have tailored workforce solutions that can fit your specific needs.

This way, you don’t have to worry about compliance and administrative burden, and you can focus on what matters most: growing your business.

CXC Global