Pros and cons of the gig economy are as follows :-
For employers, the gig economy is mostly a win-win proposition. Businesses are able to quickly contract with experts for individual projects without the overhead costs like office space, training, and benefits. For freelancing gig workers, however, it can be a mixed bag of pros and cons.
Advantages of Gig Work
- Flexibility: Unlike traditional employees, gig workers are free to choose what types of jobs they do and when and where they do them. The ability to work from home helps in balancing work and family schedules and demands.
- Independence: For people who like to be left alone while they complete an assignment, gig work is ideal. Not hindered by traditional office interruptions like staff meetings, progress reviews, and water cooler gossip sessions, gig economy workers are typically given almost unlimited independence to do their work when and how they think it should be done.
- Variety: The old office bug-a-boo of monotony is rare in gig work. A wide variety of tasks and clients every day keeps the work interesting, helping gig workers be more enthusiastic and creative in their work. Never a dull day in gig work—unless you want one.
Disadvantages of Gig Work
- Modest Pay: While they can make as much as $15,000 a year, a study by online lender Earnest found that about 85% of gig workers make less than $500 a month from a single side-job. The solution, of course, is to take on multiple gigs.
- No Benefits: Very few gig jobs come with any sort of health or retirement benefits. While some long-term contracts may come with limited benefit packages, even this is rare.
- Taxes and Expenses: Since contract gig workers are not legally classified as “employees,” their employers do not withhold income tax or Social Security taxes from their paychecks. As a result, gig workers must make quarterly estimated tax payments to the IRS based on what they have earned.
- Stress: All of the above, along with the need to constantly be looking for their next gig and dealing with changes in their current contract can make for increased stress—an undesirable tradeoff to the greater flexibility of gig work.