Is Web.2 the mother of the gig economy?

Technology and social change have great and transformative impacts on work. 

The Iron Age roughly 1,000 BCE, ushered in agricultural societies, that first supported and then largely replaced hunter gatherer societies.  The ability to use metal to create plows, and shovels, as well as weapons for defending farming communities changed the economics of the day.
Huge leap forward to the Industrial Revolution, roughly the 19th century CE, which dramatically changed the economic landscape by introducing technology-enabled, steam engine and other tools for manufacturing work, making a dent in the agricultural economy.




Another huge leap to the Information Age, or better for our purpose, the New Media Age, (aka the Information Age or the Computer Age), let's say very late 20-21st CE.  And here we are.



 Always, some gain and some lose in the birthing of a new economic age.  

This post deals a phenomenon, that seems to cut both ways, the gig economy, defined narrowly as "a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs."  Note that this is not about having a gig.  Many in the "salaried economy" have gigs, to keep life interesting or to provide extra income.  The "gig economy" replaces the salaried positions as described above.

A fuller understanding of the gig economy can be seen in the video below.


Video attributed to Sunil Kumar Chinmay Panda, retrieved from What is Gig Economy?

The necessary requirements of the gig economy are :

1. Independent workers who are paid "piecemeal," or by the gig. Gig workers can be classified under two categories: labor providers, such as drivers, and house cleaners and good providers, such as artists, craftsmen and instructional designers.
2. Consumers who need a specific service or product, such as ride, or a module for a larger program, or an editor for a storyboard,
3. Technology platforms that allow for direct transaction between customer and provider, flexible work schedules for gig workers, online payments, from which the platform takes a cut, and online profiles and reviewers of both producers and consumers.

The number of workers in the gig economy has risen from 10.1% in 2005 to 15.8% in 2015. 24 percent of workers reports earning some money through gigs during the year of 2015.  The growth in gig work is attributed t0 the development of technologies that easily put worker and consumer in tough, and by the decrease in the number of individuals who can find traditions, salaried, paying jobs.

However, the mindset of workers has shifted over the years,and prior to the birth of the gig.
In the 1950's and 60s, it was common for workers to stay in the same company through out reviewment.  After this, workers developed a pattern of switching jobs more often, working up the ladder by seeking out new employer, rather than working up the "corporate ladder" of a singer company.

While some workers still seek the stability of a known workplace and known salary, other workers seek out the flexibility and autonomy of the gig economy.  

Istrate, E, and Harris, J. The Future of Work, The Rise of the Gig Economy Istrate and Harris, Naco Counties Futures Lab, November 2017  

What is the function of social media in all this?

Social media is helping people build their own private portfolio, especially since companies are starting to recognize that tenure is not that important, but rather it is who you’re connected with and where the next opportunity will come from. The mindset of the independent contractor is to move faster. They want to have a one-click approach when applying for a job, so they will definitely use social media to connect with somebody who may have an opportunity for them. The internet allows them to find job posts, but it is the social web that allows them to make a trusted connection. You can see who the contractor’s contacts are. You can see who they are associated with. As a result, you have a lot more confidence in who you’re hiring to get things done.

McAlister, K, October 15, 2015 The Independent contractor and social media.

McAlister further states that LinkedIn is the social media tool most likely to come into play here, Linked In is stated by the authors as being the worlds largest staffing system. 

The gig economy is beneficial to some, but less beneficial to others.  While the gig economy has already been said to provide the worker with freedom and autonomy, it may also supply stress at not being able to predict with 100% that the next gig will be around the door.  It can lead to uncertainty in finance in the short term.  Perhaps more importantly, those in the gig economy are  less able to benefit from public social safety nets, and indeed are not contributing to the social safety nets that they themselves might rely upon.

There tends also be a blurring between home and work life. Rainie and Wellman write of this in their chapter "Networked Work" describing the effect of teleworking on home life.  Gig working could be described as teleworking, but more so, so one would not be surprised to find greater intrusion of work into family life.

In closing, I believe that the gig economy is the child of business seeking a more agile and lean workforce that can work at multiple jobs at a "multi-tasking clip.  That these workers can work remotely is a plus for keeping less of an office infrasture alive. This push has found its summit in the form of the "gig worker" who can make use of networked technology to produce, but does not rely of the company to provide him or her with the platform of that technology.


  Title image by  cogdogblog