“Gig economy” is the term for the growing labor market that centers around independent freelancers and contractors working a succession of short-term projects and tasks instead of—or in addition to—traditional full-time employment at a single company. These “gigs” have specific start and end points, and the freelancer is paid upon completion of set milestones or the entire project. 

Upwards of 20 to 30 percent of the U.S. and European working-age population is classified as independent workers, the class of employment that encompasses gig and freelance workers, according to Randstad’s 2017 Talent Trends report.  Across all markets, as many as 162 million people are working for themselves, rather than a company.

The ride-sharing app, Uber, is something of a poster-child for the gig economy, but the gig economy has grown to encompass more and a greater variety of tasks—everything from deliveries and home maintenance, to software development and engineering.

How Does the Gig Economy Work?

This method of freelancing isn’t new. What is a new development unique to the modern gig economy is the prevalence of third-party talent platforms that help freelancers find work and manage hiring and payment processes.  People looking to hire can post tasks on the platform’s website or app, and those looking to work can apply.  Usually both sides of the equation can also browse profiles according to expertise needed, type of work wanted or price.

Most platforms cover many different industries and job types, and accept freelancers with any availability from a few hours a week to those willing to work as full-time contract workers.