While many industries and segments of the market are in freefall, the current economic situation created by the COVID-19 pandemic may actually be a positive for the growing Gig Economy.
Coronavirus has changed the daily lives of every American - particularly small, brick and mortar businesses. As reported by CNN Business, such companies “are struggling to stay afloat and people are relying more on internet gigs.” During this period in which full-time positions are scarce, side hustles and multiple gigs might become the new normal. According to a recent Gartner study, 32% of employers are replacing full-time employees with gig talent.
GigSmart (a staffing firm) has reported that demand for its gig economy apps has increased by 25% from March 13 - the day the virus was declared a national emergency - to July 15. Additionally, it was reported that hourly rates of gig workers have increased from $17 to $22 during this period.
The ability to hire gig workers presents positives for both businesses and individuals themselves. Businesses are able to lower the risks and costs associated with hiring full-time employees, while individuals who may be out of work, or on reduced hours, are able to pick up side hustles.