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Is a Job in the Gig Economy Right for You?

The gig economy is growing. Want to grow with it? Read on to find out if gig work is right for you.

By Dillon Price, Monster Contributor
woman in cafe working on laptop

The gig economy has exploded in popularity since the recession of 2008 and the “Great Resignation” during the COVID-19 pandemic. Gig work offers flexibility to both workers and companies—but comes with a long list of pros and cons.

According to a Randstad study, 70% of workers and 68% of employers predicted a significant increase in contractor, freelancer, consultant, and other gig economy jobs by 2025. Today, there are more than 60 million freelance workers in the United States.

Wondering if gig work is a good option for your financial and career goals? Whether you’re looking for a steady income or a side hustle, it’s important to do your research to determine if gig work is right for you. In this article, we cover the what the gig economy is, the benefits and drawbacks of doing gig work, where to find side hustles, and more.

What Is the Gig Economy?

The term “gig” doesn’t just apply to touring musicians—it refers to a wide variety of workers from delivery drivers to IT professionals. Also known as the sharing economy and access economy, the gig economy is a labor market defined by contract, freelance, and temporary jobs.

Gig economy jobs often include one-off tasks and short- or long-term contracts rather than permanent employment. Many companies bring in contactors or freelancers to complete recurring short-term tasks (e.g., blog writing) to long-term projects (e.g., a complete restructuring of a website or brand).

Many employers prefer to hire contractors and freelancers to avoid paying certain benefits such as paid time off and health insurance. Some do so to avoid the expenses of maintaining a workspace or office.

Gig Economy Examples

Gig workers typically include:

  • Independent contractors: People who provide services to other entities under a specified contract or agreement. This can include a variety of professional workers such as accountants, construction workers, and software developers.
  • Freelancers: Self-employed workers who provide services on a project-by-project basis. These are usually creative professionals such as writers, photographers, and graphic designers.
  • Per diem workers: Temp workers who take on specified projects or assignments on a day-to-day basis. Per diem work is common among medical personnel, substitute teachers, and laborers.
  • Consultants: Independent professionals who provide their knowledge and expertise to companies in a specific field (e.g., financial, legal, marketing, and tech).

More gig economy examples include these sectors and companies:

  • Ride-share companies such as Uber and Lyft.
  • Freelance platforms for creative workers such as Upwork and Fiverr.
  • Freelance platforms for IT professionals and software developers such as Toptal.
  • Food delivery services such as DoorDash, Grubhub, and Uber Eats.
  • Homestay and rental services such as Airbnb and Vrbo.
  • Personal grocery shopping and delivery services such as Instacart.
  • Package delivery services such as Amazon and FedEx.

The Advantages of the Gig Economy

A large portion of people who left their jobs during the “Great Resignation” chose gig work over permanent employment for a reason. A full 79 percent of full-time gig workers are satisfied with working as freelancers or contractors. Here are some of the advantages of the gig economy over the traditional 9-5 work model:

  • Flexible work schedules: Gig work is a great way to escape the standard 9-5 schedule, enjoy a better work-life balance, and choose from a variety of jobs.
  • Independence: When you become a gig worker, you’re your own boss and can choose which gigs you want to take and when you want to take them.
  • The ability to work from anywhere: Contract and freelance jobs often allow you the freedom to work from anywhere. Gig work is a great way to earn money while you travel or move around.
  • Supplemental income: Got a full-time job but need to earn some extra cash on the side? Gig work is a great way to supplement your income without committing to a permanent position.
  • Faster onboarding: While you may interview and undergo screening for some gig jobs, you likely won’t have to go through multiple interviews like you would with a full-time permanent position.
  • More industries to choose from: Gig work allows job seekers to find opportunities in a variety of industries. This is especially useful for workers trying to build their skillset to get their foot in the door in a specific industry.
  • No experience needed: Many gig jobs don’t require any previous experience to get started, so they’re a great way to bulk up your resume. However, some gig jobs—such as creative, tech-related, and consultant jobs—require some previous experience.

The Disadvantages of Working in the Gig Economy

While the gig work model has revolutionized the way we work, it’s not for everyone. Some of the most common challenges of gig work include:

  • Lack of benefits: Unlike many full-time permanent positions, many gig jobs don’t offer paid time off, health insurance, retirement plans, workers’ compensation, or other benefits. Some companies offer outsourced benefits from third-party agencies such as health insurance and workers’ compensation.
  • No job security: Since gig jobs are typically on-demand or temporary, they don’t offer the same level of job security as permanent positions. That’s because many gigs are short-term, leaving workers constantly searching for the next opportunity.
  • Tax implications: The IRS requires you to report income earned from a gig job on Form 1099-K, 1099-MISC, and W-2. Unlike most permanent jobs, you won’t have taxes deducted from your paycheck. Instead, you’ll need to keep records of your income and expenses and pay your estimated taxes every quarter.
  • Social isolation: If you’re a social butterfly, gig work may not be for you. In most gig jobs, you’re either working remotely or on the road.
  • High competition: With the growing popularity of contract and freelance work, many people are competing for the same jobs. This can make it difficult to stand out.
  • More responsibility: While gig work often means being your own boss, you’ll likely be responsible for marketing yourself, invoicing, maintaining records, and managing your own schedule and finances.

What Percentage of Millennials Make Up the Gig Economy?

According to a 2020 survey, 44 percent of Millennials (people born between 1981 and 1996) participated in contract and freelance work. Additionally, 50 percent of Gen Zers (people born between 1997 and 2013), 30 percent of Gen Xers, and 26 percent of Baby Boomers held gig jobs.

How Gamification Took Over the Gig Economy

Gamification involves implementing game-like elements—such as point systems, badges, and rewards—into non-game platforms.

Gamification has revolutionized gig work over the last few years. Companies often use gamification to incentivize contractors, freelancers, and other gig workers to complete certain tasks. They also use leaderboards to identify their top performers. This not only boosts motivation, engagement, and productivity, but it also makes gig work more enjoyable.

Examples of how gamification took over the gig economy include:

How to Find Gig Economy Jobs

When it comes to finding the right gig job, it’s important to set realistic expectations. Gig work is often project-based, which means that there will likely be times when you don’t have any work coming in. To find a steady stream of work, it’s a good idea to keep your options open and not rely on only one gig job to earn a living.

To make yourself stand out, create a resume that proves that you’re a self-starter. Highlight your key skills such as time management, organization, workflow management, and task prioritization. See our Uber driver resume sample for insight on how to write and format your resume for gig work. Additionally, creative workers should have a portfolio that showcases their work.

It’s also a good idea to send a cover letter with your resume, even if a company doesn’t ask for one. Many companies sort through hundreds of applications and resumes before selecting the best candidates to freelance or contract for them. A cover letter that demonstrates your motivation and initiative shows potential clients that you can be your own boss.

You can find many gigs in cities and suburban areas where rideshare, food delivery, and homestay services exist. Many other gig jobs—such as freelance creative work—are usually offered remotely.

When you’re ready to begin your search, you can find some of the best gig economy jobs here:

How Much Do Gig Economy Jobs Pay?

Gig jobs pay differently depending on the type of job, location, and your experience level. For example, you could earn up to $19 per hour (or more) working for a rideshare service or food delivery company. Gig drivers also make a significant portion of their earnings through tips.

Writers typically earn between $16.35 and $37.15 per hour. However, as a freelance writer, you’ll likely get paid a flat rate per project or between $0.02 and $0.10 per word (or more) depending on your experience and the complexity of an assignment.

Want a general idea of how much your gig job pays? Look up your job title and location on Monster’s Salary Tool for a pay range. This tool will also show you where your job is in high demand, and which steps you can take to advance along your career path.

Find Your Next Gig at Monster

Finding work that gives you the freedom and autonomy you need has never been easier. Simply create your profile on Monster to fast-track your way to a rewarding gig economy job. We’ll send free job notifications to keep you updated on new gigs that fit your criteria and make your resume visible to companies on our platform.