What Is the Gig Economy? 5 Things to Know for Gig Workers
What is the gig economy?
The IRS defines the gig economy as “activity where people earn income providing on-demand work, services or goods,” often through an app or website
. This area of the job market consists of temporary, contract and freelance jobs.
The term “gig economy” gets thrown around most often in reference to jobs like working with a rideshare company, such as Uber or Lyft, making deliveries or walking dogs. But the gig economy represents a large part of the workforce and spans virtually every industry. For instance, a 2022 survey commissioned by Upwork among 3,000 professionals found that 60 million Americans had freelanced within the previous 12 months
.
» MORE: What job makes the most money?
What is gig work?
Gig work varies widely, so it isn’t always easy to pinpoint. Common examples include renting out a room on a short-term rental site, selling clothes online, driving for a rideshare company and making deliveries for Amazon Flex or another service. It also includes jobs like freelance writing, tutoring, design, caregiving and many more. If you are looking to work from home, gig work may be just the ticket, particularly if you already have hobbies that make money.
A “gig” (sometimes called a “side hustle”) is generally a short-term task, project or job that a person takes up to make extra cash. But many do gig work long term or as a main source of income. Some gig workers get paid per task or assignment. Others earn an hourly rate.