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The Gig Economy

Recruitment Trends

The Gig Economy is Here to Stay

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Alan D'cruz - 15 Mar, 2023

Head of CX & Marketing

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HR, Business, Economy,

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What This Means for Employers and Workers

The gig economy, also known as the freelance economy, is a growing trend in the labor market. It refers to a model where workers are hired on a short-term, contract, or freelance basis instead of being offered permanent employment. In the gig economy, workers are often referred to as freelancers, independent contractors, or on-demand workers.

The gig economy has been growing rapidly in recent years, driven by advances in technology, changes in consumer behavior, and the desire for more flexible work arrangements. Gig work is particularly popular among younger workers, with around 40% of gig workers aged between 18 and 34. However, concerns have been raised about the lack of job security and employment protections for gig workers in New Zealand, leading to calls for regulatory reform to ensure fair treatment and better working conditions.

Key players in the gig economy include companies like Uber and Airbnb, as well as platforms like Fiverr, Upwork and Freelancer. These companies have disrupted traditional industries like transportation, marketing and hospitality by connecting consumers directly with service providers.

The gig economy is not just limited to certain sectors or industries. It spans across a wide range of professions, from creative and technical services to healthcare and education. Many highly skilled workers, such as software developers, graphic designers, and consultants, have turned to freelance work as a way to showcase their skills and work on projects that interest them.

The gig economy offers many benefits for both employers and workers. For employers, it provides access to a wider talent pool and reduces the costs associated with hiring and managing full-time employees. For workers, it offers flexibility, autonomy, and the ability to choose the projects they work on.

However, the gig economy also presents several challenges and risks. Workers may experience income instability, lack access to benefits like healthcare and retirement plans, and struggle to find consistent work. As a result, it is important for workers to be aware of the risks and to take steps to protect themselves. Similarly, employers must ensure that they are leveraging the gig economy model ethically and legally.

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