It looks very much as though the gig economy is becoming the future of work. This has been greatly accelerated recently, with its growth doubling since the pandemic hit.
Although the gig economy started way back in the 1920s when the term “gig” was coined by jazz musicians, it was not till 2009 that this phenomenon came into its own as more people were enticed by freelance work (or platform work).
The prospect of managing your own time to create work-life balance has made gig jobs attractive for many people. It also drives the gig economy to rise as more industries are seeing the benefits of hiring gig workers.
The Rise of Gig Economy
The number of gig workers is expected to grow to 915M by 2023 according to Mastercard’s 2020 Report: Fuelling the Global Gig Economy. This report also indicates that gig workers could further increase by 10% of the global freelancers’ population, as the gig platform continues to expand in the global market.
Taken from Fuelling the Global Gig Economy by Mastercard.
The world is fast becoming more reliant on digital technology, and that could also result in the platform economy seeing a boost of gig workers. It is estimated that by 2030 gig working will make up roughly 80% of the workforce, according to The-Rise-of-Gig-Economy.
While digital advancement has become one of the reasons for the boom of the gig economy, we can’t disregard the power of word of mouth. Word of mouth made the gig economy noticeable from the get-go.
Clients that are satisfied with services through platform work tell their stories and recommendations to their circle… and so the industry and opportunities grow.
Then the pandemic hit, and with the lockdown in place, the gig economy had a sudden surge and a shift as well.
The thriving Gig Economy in Europe
Although there are no exact numbers of how large the gig economy is at the moment in Europe, it continues to be one of the top regions seeing rapid growth.
It is still expected to develop, as the younger generation is drawn to the platform economy because of the flexible work environment it offers. And before the pandemic hit, freelancers or independent contractors contributed 20% to 30% of job creation in Europe.
Many people have the vision that the sharing economy may be the future of work, paving the way for a more sustainable economy as seen in the emergence of 15-minute cities throughout Europe.
Future of Gig Economy in Europe
Developing policies to avoid exploitation of gig workers is also important as the gig economy grows. Existing policy and legislation is mainly based on traditional notions of employment.
Payment providers are also taking into consideration how to accommodate the growing industry of gig workers and freelancers.
With an estimated 540 million people who could be looking for jobs in online platforms by 2025, the payment and financial sectors need to offer options on how to manage and secure these funds in compliance with government regulation and anti-money laundering laws plus handling the currency exchange as well.
Velvet Platform offers collaborative payment solutions in the new economy, making multi-currency projects, secure fund management and scheduled payments to your team a dream.