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Manonita Rathore
Gig economy and behaviour &soft skills Expert
Asked a question last year

Explain the difference between traditional economy and gig economy .

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Manonita Rathore
Gig economy and behaviour &soft skills Expert

Definition

The gig economy refers to an economy where flexible and temporary jobs are available hence companies hire freelancers and independent contractors instead of full-time employees. On the other hand, traditional economy refers to an economy whereby a company employs people on a full-time basis to carry out a particular task.

Types of jobs

While a gig economy offers temporal jobs such as contracts or short term gigs, a traditional economy offers long term and permanent jobs.

Flexibility

The gig economy offers a high level of flexibility. On the other hand, a traditional economy does not offer work flexibility.

Benefits

While employees under a gig economy do not enjoy additional benefits, employees under a traditional economy enjoy additional benefits such as health insurance and leave days.

Costs incurred

A gig economy enables employers to eliminate unnecessary overhead costs such as benefits, office space as well as training. On the other hand, employers under a traditional economy incur overhead costs including the payment of benefits office space as well as training.

Work monotony

While a gig economy breaks work monotony hence promoting creativity and enthusiasm, a traditional economy creates work monotony hence discouraging creativity and enthusiasm.

The gig economy refers to an economy where flexible and temporary jobs are available hence companies hire freelancers and independent contractors instead of full-time employees. Employers hence eliminate unnecessary overhead costs such as additional benefits, office space as well as employee training. Although employees do not enjoy additional benefits, they enjoy a high level of flexibility.

On the other hand, traditional economy refers to an economy whereby a company employs people on a full-time basis to carry out a particular task. Although the jobs are not flexible, employees enjoy additional benefits such as health insurance and leave days not to mention the stable pay. Employers, however, incur overhead costs including the payment of additional benefits, office space as well as employee training.