The Gig Economy: Boon or Bane for Gen Z?

The gig economy is a term that’s been buzzing around ever since the 2020 pandemic. It refers to a workforce where individuals take on short-term, flexible jobs rather than traditional full-time employment.

That’s right, it’s all about freelancing, contracting, nomadism, and flexibility in work arrangements. And guess what? Gen Z is at the forefront of this economy. According to a survey, 43% of Gen Zs and 46% of millennials are freelancing in one form or another. Meanwhile, Gen X and baby boomers stand at 35% and 27%, respectively.

As Gen Zs, we have a knack for adapting to change and craving independence, hence the inclination towards the gig economy. Whether it’s freelance writing, graphic design gigs, or driving for rideshare services, we’re exploring new ways to work on our own terms.

But is it all good? Or are we getting sucked into a dead-end? But first:

What is the Gig Economy?

The gig economy is all about flexible work. Instead of sticking to one job, people do lots of small jobs, often through apps, websites, or independently. It’s like having multiple mini-flexible jobs instead of one big job. This way, you can work when you want and where you want.

In the traditional world, most people work full-time for one company, giving their 9-to-6 from Monday to Friday. But now, more and more people are choosing gig work because it gives them freedom and flexibility.

Examples of Popular Gig Platforms:

Uber: You can give people rides using your own car. Work as many hours as you want.
Upwork and Freelancer: These websites help you find freelance/contractual work like writing, designing, or coding. You pitch to job postings.
Fiverr: You can offer all kinds of services here, like drawing cartoons or making videos, starting at just $5. People in need come aboard, buy your package, and you deliver the work.
Independent Worker: This is the most popular way of working gigs. Take me, for example – I use social media channels to attract inbound and outbound clients. I pitch my work, the client pays me, and I deliver the work. (The same way I’m writing for this blog!)

You also know the gig economy as the creator economy. But there is a big difference between the two:

Difference between the gig economy and the creator economy:

Gig Economy:

In the gig economy, you perform short-term, flexible jobs for various clients or companies.
These jobs often revolve around providing services like driving, delivery, writing, graphic design, or virtual assistance.
The focus in the gig economy is on providing a service or completing a task in exchange for payment.
Examples of gig economy platforms include Uber, TaskRabbit, Upwork, and independent freelancing.

Creator Economy:

The creator economy centers around you leveraging your skills, talents, and creativity to produce content or products for an audience.
You, as a creator, work towards building a personal brand and monetize content through various channels, including social media, video platforms, podcasts, blogs, and online marketplaces.
Unlike traditional employment models, creators have direct relationships with their audiences and can earn revenue through advertising, sponsorships, subscriptions, or merchandise sales.
Examples of creator economy platforms include YouTube, Patreon, TikTok, Etsy, and Twitch.

Let’s not sway from the main idea of our topic. We have now established what gig economy is and we want to understand if it is a boon or bane for Gen Zs. But before that:

Why is the Gig Economy so Popular among Gen Z?

I, too, am a Gen Z (yeah!), and I understand what a Gen Z wants. Are you wondering why the gig economy is all the rage among us? Let me break it down in our language:

Benefits of the Gig Economy:

Flexibility: You know how we love having the freedom to do things our way? Well, the gig economy totally gets that. It helps us get the work that fits into our crazy schedules, letting us work when and where we want.
Independence: Ever dreamt of being your own boss? I know I did! We Gen Zs don’t like answering to a boss or sticking to a rigid office hierarchy. With gig economy, we get to pick the gigs we want, set our own rules, and earn on our terms.
Entrepreneurial Mode: Admit it; being an entrepreneur is cool, and we want to look cool. And we like the gig economy because it serves as a playground for entrepreneurship. Whether it’s freelancing as a graphic designer or ghostwriter, most freelancers get the chance to scale. Freelancing to agency, agency to company.
Upskilling: Who says you have to stick to one thing? Gig work lets us try our hand at all sorts of cool stuff. From coding to content creation to customer service, we like constantly learning and leveling up our skills. Plus, it looks pretty sweet on our resume!
Tech is Our Jam: Let’s face it, we’re the kings and queens of the digital world. And the gig economy? It’s right up our alley. Everything happens online, from finding gigs to getting paid, thanks to apps and websites that speak our language.

Full story here.

That’s right! I started my career as a developer 2.5 years ago. Since then, thanks to the gig economy, I’ve been a technical writer, community manager, ghostwriter, and branding expert.

That’s a lot, right? Here’s a secret: I did technical writing and community management while I had a fulltime job. Yes, moonlighting!

Again, the gig economy glitters, but it is not all gold.

Challenges (Is the Gig Economy Bad for Gen Zs?)

Lack of Job Security and Benefits:

The gig economy comes with a lack of stability and security that comes with traditional employment. Gig workers don’t have the same protections and benefits as full-time employees, such as health insurance, provident fund, paid time off, or retirement plans.

Without these safety nets, most gig workers face financial vulnerability during times of illness, injury, or economic downturns. Additionally, the gig economy is highly competitive, with gig workers constantly hustling to secure gigs and maintain their income levels.

Potential for Exploitation and Burnout:

While the gig economy promises flexibility, it can also lead to exploitation and burnout. Gig platforms often prioritize profits over worker rights, resulting in low wages, long hours, and minimal job security.

Some gig workers find themselves working multiple gigs simultaneously or accepting low-paying gigs just to make ends meet, leading to exhaustion and burnout. Moreover, the lack of clear boundaries between work and personal life in the gig economy can blur the lines, making it challenging to switch off and recharge.

Plus, the promoted hustle culture on social media platforms often tempts freelancers to work beyond their capabilities. This leads to burnout and frustration.

Financial Instability and Unpredictable Income:

One of the biggest challenges of the gig economy is its inherent financial instability. Gig workers often face irregular income streams, with earnings fluctuating from month to month. I personally get it.

For example – In November 2023, I had 4 clients, and suddenly, in December 2023, I was left with 2 clients. My income was cut to half, just like that.

Without a predictable paycheck, it can be challenging to budget, plan for expenses, or save for the future. This financial uncertainty leads to stress, anxiety, and difficulty meeting basic needs like rent, groceries, or healthcare costs.

Moreover, as a gig worker, you may struggle to access financial services like loans or mortgages due to variable income and lack of traditional employment records.

How Can Gen Zs Leverage the Gig Economy positively?

Before I conclude the article with my verdict, here’s how you can leverage the gig economy positively while addressing its challenges:

1. Diversify Income Streams:

Instead of relying only on gig work for money, explore different ways to earn. This might include part-time jobs, passive income sources like investments, or even starting a small business.

Having multiple income sources helps to smooth out the ups and downs of gig work and gives you more stability.

2. Skill Monetization and Upskilling:

Use the skills you have to make money in the gig economy. Whether you’re good at design, coding, writing, or something else, there’s probably a way to turn it into a gig.

Keep learning and improving your skills. Use social media platforms like LinkedIn and X to network with high-value professionals and grab any available gig opportunities.

3. Build a Personal Brand:

Stand out from the crowd by building a personal brand. Show off your skills, experiences, and personality on social media platforms like Instagram and LinkedIn.

This helps you attract clients and gigs that fit with who you are and what you’re good at.

4. Prioritize Self-Care and Boundaries:

Take care of yourself while gigging. Set up a dedicated workload and time span, take breaks, and don’t overwork yourself.

Speak up for your rights as a gig worker. Join unions or support laws that protect gig workers from exploitation.

5. Plan for the Future:

Even though gig work can be uncertain, think about your financial future. Save some of your earnings, invest in retirement accounts, and consider options for healthcare coverage.

Get advice from financial experts if you need help making decisions about your money. Now:

Is the Gig Economy a Boon or Bane?

In conclusion, whether the gig economy is a boon or bane for Gen Z depends on how we handle it. Sure, it gives us flexibility, chances to build skills, and even start our own gigs. But let’s not overlook the downsides like job uncertainty and burnout.

By being smart about how we approach gig work, taking care of ourselves, and speaking up for fair treatment, we can make the most of its perks while dodging its pitfalls. Want to learn more about gig economy and hustling? Join our network of highly-vetted hustlers: The FuelEd Community.

FAQs

1. What exactly is the gig economy, and how does it differ from traditional employment?

The gig economy refers to independent employment where individuals take on short-term, flexible jobs rather than traditional full-time employment. In this economy, people often work independently, on a project-by-project basis, and typically use digital platforms or apps to find and complete gigs.

2. Why is the gig economy particularly popular among Gen Z?

Gen Z gravitates toward the gig economy due to its emphasis on flexibility, independence, and entrepreneurial opportunities. With a knack for adapting to change and a desire for autonomy, Gen Z finds gig work appealing as it allows them to work on their own terms, pursue multiple passions simultaneously, and explore diverse career paths.

3. What are some common examples of gig economy platforms?

Popular gig economy platforms include Uber (for ridesharing), Upwork and Freelancer (for freelance work), TaskRabbit (for local tasks and errands), Fiverr (for creative services), and independent contracting through social media channels or personal websites.

4. What are the main challenges or drawbacks of participating in the gig economy?

While the gig economy offers flexibility and autonomy, it also presents challenges such as lack of job security and benefits, potential for exploitation and burnout, and financial instability due to unpredictable income streams.

5. How can Gen Z leverage the gig economy positively while addressing its challenges?

Gen Z can leverage the gig economy positively by diversifying income streams, monetizing skills and upskilling, building a personal brand, prioritizing self-care and boundaries, and planning for the future by saving and investing wisely.

6. Is the gig economy a sustainable long-term career option for Gen Z, or should they seek more traditional employment opportunities?

The suitability of the gig economy as a long-term career option for Gen Z varies depending on individual preferences, goals, and circumstances. You, as a Gen Z, should carefully weigh their options and consider factors such as financial stability, career advancement, and personal fulfillment when making career decisions.