What Are They? What Does it Mean?

1. What Are They? What Does it Mean?

2. What is the Gig Economy? • free market system in which temporary positions are common and businesses contract with independent workers for short-term engagements • workers make money by matching with individual clients and completing a work assignment • gigs can be short (five minute survey), a month or a year-long project Turnover is expected and loyalty isn’t a guarantee! The Gig economy includes workers who rely on project or task-based activities outside of traditional forms of full-time salaried or hourly wage work.

3. Traditional vs. Gig Employment – How are They Different? • Traditional Employment: • rigid, predictable work schedule, benefits • consistent, long-term assignment; identifiable pay scale • expectation of return to work every day indefinitely • Gig Employment: • employer/worker commitment as needed • agreed, specified duration of employment • worker has more control over hours and schedule All gigs are jobs, but not all jobs are gigs!

4. Gig Work – is it a New Phenomenon? • NO… • most individuals unknowingly have participated in the Gig economy • In just one generation, the corporate gravy train full of plentiful, progressive, benefit-rich and secure full-time jobs has left the station. Workers are getting used to non-full-time work and even choosing it because of the freedom it can afford. The Gig Economy is a new way of work that seems to be working. Miami Herald Gig workers have been around as long as there have been handypersons, tutors and musicians.

5. Factors Contributing to the Increase in Gig Work • Changing business and cultural environment • tendency for businesses to hire independent contractors, short-term workers • technology advances and economic downturn • workforce increasingly mobile • Developing worker preference and demands • availability of workers for short-term arrangements • balance work and play • passion • 3. Shifts in economy • barter • gift • second-hand, share When faced with volatile incomes in main jobs and credit market imperfections, Gig jobs can be valuable.

6. What is the Size of the Gig Economy? • roughly 11% of U.S. workforce obtaining full-time income from gig economy • (source: Nation 1099, Bureau of Labor Statistics) • Today, 55 million people are Gig workers representing approximately 36% of the workforce. • (source: NVM) Individuals are participating in the Gig economy with “side hustles” and various types of part-time/occasional freelance work.

7. Who are the Gig Workers? • Contingent Workers • Independent Contractors • On-Call workers • Solopreneurs • Temporary Agency workers

8. What Industries Attract Gig Workers? Knowledge-intensive industries and creative occupations are the largest and fastest-growing segments of the Gig economy.

9. Family Income Sources (by age) Percent • Wages and salaries are the most common source of family income • many families also rely on other non-traditional income sources Among young adults (ages 18 to 29), gig work was the most common source of income.

10. Importance of Money Earned through Gig Work to Family Incomes (percent) Source: Board of Governors of the Federal Reserve System: Report on the Economic Well-Being of U.S. Households in 2017

11. Popular Sites to find Gig Jobs There are a growing number of online job boards specializing in freelance, project and contract work. Some cover a wide range of industries; others are industry-specific. Here are three sites to consider: • BackDoorJobs.com – seasonal/summer jobs • Behance.net  • CoolWorks.com - seasonal/summer jobs • Directselling411.com  • Elance.com 
 • Fiverr.com • FlexJobs.com  • Freelancer.com • Gigster.com • Guru.com  • LocalSolo.com • Ratracerebellion.com  • TaskRabbit.com • Tentiltwo.com • Toptal.com • Upwork.com In order to attract workers, some electronic platforms are moving toward the provision of health insurance, benefits, and retirement packages.

12. How Did the Gig Economy Evolve? Perception: • Gig economy appeared “swollen” primarily due to the weak labor market in the aftermath of the 2009 recession • people accepted “odd jobs” Main Reasons for obtaining Gig Work: • supplement income from regular work • hobby or fun • primary source of income • help family members • acquire or maintain skills As recessions come and go…so will the strength of the Gig economy.

13. Gig Work – Advantages and Disadvantages for a Worker • Advantages • Flexibility • work-life balance • independence • Variety of jobs • diversity of assignments • lack of monotonous tasks • Entry and access to the workforce • high school, college graduates • dislocated workers • Pay • higher wages • access to money • Disadvantages • Benefits • no included • cost of health insurance • Stress • lack of secure, steady employment • Constant search for next “gig” • Isolation and lack of cultural solidarity • feeling of being removed, left out • difficult to communicate • Taxes • deductions higher

14. Gig Work – Advantages and Disadvantages for a Business • Advantages • Lower costs • No onboarding costs or benefits • only pay for labor • Ability to scale quickly • workers identified quickly • implementation of remote work • Diverse pool of flexible workers • varying skill levels and backgrounds • Disadvantages • Reliability of workers • may possess poor work ethic • at mercy of employer • Workers not familiar with business • business terminology • culture • At mercy of worker • limited supervision • While there are both pros and cons to freelance workers, all sides can agree that gig economy careers are continuing to impact businesses. 

15. Best Practices for the Gig Worker • Create/Find your niche • figure out ways to differentiate yourself from other workers (unique, in-demand) • Leverage technology platforms to find opportunities • technology platforms (third party) to connect skills to business (marketing) • Set your schedule • determine availability ahead of time • Manage your finances • establish an emergency fund for unplanned expenses and/or gaps in employment • Treat every gig as if it’s an audition • give every job your all – referrals, positive feedback are the key toward building a client base

16. How the Gig Economy Works • Workers: • access to employment opportunities Download apps to mobile device • Businesses/Clients/Customers: • Identify qualified candidates Digital/technology platforms are the primary engine of business activity and growth for the Gig economy and are specifically designed to bring freelancers and clients together

17. Combined Alternative Workers and Part-TimeWorkers are Increasing

18. Questions Regarding the Gig Economy… Matthew Krzyzek, Economist Connecticut Department of Labor, Office of Research matthew.krzyzek@ct.gov (860) 263-6287 Mark A. Stankiewicz, Program and Services Coordinator Connecticut Department of Labor, Office of Workforce Competitiveness mark.stankiewicz@ct.gov (860) 263-6518 www.businessct.com