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Some 73.3 million people participated in the gig economy last year, representing about 38% of the U.S. workforce. This year, it is projected to exceed 76.4 million — and these workers aren't all doing rideshares or deliveries. As the future of work evolves, we are seeing an expansion in when, where, and how workers find jobs, and it's helping them strike a balance between keeping a flexible schedule and maintaining a reliable and comfortable income.
Welcome to the "gig economy 2.0," a new model that leverages technology to offer more flexibility and financial stability for workers who traditionally experience the anxiety and insecurity of fluctuating income. It is a game-changer for people used to playing the vital role of filling in employment gaps for businesses but without the advantages of being able to confidently set their own financial, professional, and personal goals. With new tools at their disposal, gig workers are leveling up.
The Limitations of the Old Gig Economy
Freelancing has been around for a long time, but apps like Lyft and DoorDash helped transform work-from-home into work-from-anywhere, and made extra income and side hustles that much more accessible. When the pandemic spurred the adoption of such services, the gig economy found itself in full bloom, suddenly offering more full-time work opportunities than ever before. But it didn't come without challenges.
While gig workers relish flexibility, some days that could feel like the only benefit of the job. When it comes to the traditional gig economy, it's hard to know what to expect. Seasonality, tough competition, and changing rules mean you could make great money one day and nothing the next. That reality makes it difficult to plan a life, support a family, or look ahead to future goals — not the least the dream of owning a home (which can already feel elusive in the current market).
What the traditional gig economy lacks in stability, the gig economy 2.0 is set to restore through increased worker control. At the same time, it's poised to widen opportunities beyond traditional gig roles like Uber and help businesses tap into a wider pool of talent for every industry, from events to hospitality and even healthcare.
New Work Models to Reward Workers
Challenges faced by workers and employers alike have introduced a new sustainable and financially rewarding model known as flexible work. The idea is to leverage the flexibility of hourly workers to help businesses meet staffing demands, especially when seasonal and economic factors require them to scale up and down quickly. This workforce lets employers augment their traditional staff in an affordable and efficient way, while helping hourly workers thrive.
A handful of new platforms are helping cultivate the flexible work model, offering people a place to find hourly shifts on their own terms. Workers create a profile, describe their skills, and choose how far they are willing to travel for work. They are then matched with available shifts in the area, and can pick and choose which ones they want to take.
Unlike traditional employment, flexible work doesn't require workers to show up for a fixed schedule — just the opposite. They have the option to sign up for one-off shifts, especially when big events roll into town; they can also secure regular shifts months in advance. This model allows workers to build a schedule that fits their life circumstances and achieve a sense of stability previously unattainable for hourly workers. Plus, these platforms are helping people secure their financial outlook in other ways, such as offering occupational accident insurance coverage, performance bonuses, and instant payments.
Welcoming a New Wave of Work
The way people find work has changed for good, especially for those looking to leverage a side hustle. For workers just being introduced to the notion of flexible work, the first step is to look outside of traditional job boards and seek out resources that can help you connect with businesses in your area that are hiring flexible workers. From there, move beyond the day-by-day mindset and start thinking long term.
Goal-setting offers a means of motivation and an immense sense of accomplishment, but it also serves the very practical purpose of helping workers gain the control they need over their finances. As you hit one goal, make sure you stair-step into the next, and then suddenly you can have the runway to be successful at whatever you are trying to achieve.
When it comes to staying on track toward your goals, there are plenty of apps available for hourly workers to help with financial planning, budgeting, time management, and even upskilling so you can unlock new shift opportunities. We have seen people hit six figures, bought homes, and funded vacations — and they could not have done that if they didn't have those big goals in mind, and many smaller goals leading up to them. In the gig economy 2.0, there are fewer structural barriers to achieving those goals. It is simply about having the gumption to pursue them single-mindedly.
What's Ahead for Skilled Laborers?
Most people have heard of the gig economy but their immediate association is usually Uber and DoorDash. The gig economy 2.0 represents a larger evolution that includes not just flexible work but a broader range of opportunities and more income stability. In this new world, if you have the will to work, you can make anything happen.
As a starting point, utilize flexible work platforms to find lucrative side hustles and work opportunities that aren't too far from home. Staying local is a key for hourly or flexible workers to maximize income. That can let you dip your toe in the water and see if those opportunities are sustainable. One of the greatest virtues of this approach is the ability to match your work with your life circumstances. It's all about choice and in the gig economy 2.0, workers can have more of it than ever before.