The impact of the gig economy on hourly work

The gig economy is changing traditional jobs. As an hourly worker, you don’t have to confine yourself to a sales floor or desk if you don’t want to be there. The sharing economy (also known as the gig economy) is changing how people do hourly work. 

Whether you work on a digital platform like Upwork, drive people around in Uber or Lyft or rent your extra bedroom on Airbnb, the gig economy is a great way to earn a part-time or full-time living. 

However, the gig economy is pretty new. Before you quit your existing hourly job, you need to know how the gig economy is different from traditional employment. Weigh the pros and cons of the gig economy carefully before you quit your job in a blaze of glory.

Pros and cons of working in the gig economy

Pros

1. Work-life balance

As a gig worker, you never have to work another New Years or Thanksgiving. Choose whether you want to work part-time or full-time in the gig economy. Set your own schedule and work when it’s most convenient for you. Gigs are a godsend for college students or working parents that need more balance.

2. A sense of control

Sick of your manager scheduling you to work doubles? With the gig economy, you don’t have to do that ever again. Because you get to set your own schedule, you have the freedom to sleep in, stay up late or care for family during the day. You control your fate! 

3. It’s exciting!

Never sit through another meeting as a gig worker. Gig workers don’t wake up to a flood of emails every morning. They’re walking dogs, chauffeuring interesting people and delivering groceries. No day is the same as a gig worker, and that’s what makes it so exciting. 

Cons

1. No employer-sponsored benefits

The lack of health insurance is one of the biggest cons of the gig economy. Companies like hiring people for gigs because, as an hourly worker, you’re an independent contractor. That means you do all the work of an employee but without earning benefits. 

You can still get insurance, of course, but you’ll need to purchase it yourself. If perks like PTO and insurance matter to you, a traditional job might be more your speed. 

2. Inconsistent income

Gig workers only earn as much as they work. To stack more cash in your bank account, you’ll need to walk more dogs, drive more people and deliver more packages. Because you’re paid hourly as a gig worker, you don’t have consistent income. You’ll need to earn enough money every month to cover your bills, which is harder when you don’t have a steady paycheck!

3. Taxes

Did you know that, in a traditional job, your employer pays taxes for you? Well, as a gig worker, you’re on your own. This isn’t the end of the world, but you’ll need to know how to pay FICA yourself or you risk a slap on the hand from the IRS. 

The bottom line

More and more hourly workers are switching to gig jobs. There’s nothing wrong with that, but you need to understand the pros and cons of working in the gig economy before jumping in headfirst.

If the flexibility and control of the gig economy appeal to you, pick the right gig for your schedule and skills. Here are 4 gig ideas that aren’t driving for Uber.